First Time Buyers

According to Canada Revenue Agency under the Home Buyer’s Plan RRSP’s can be used by first-time home buyers as a source of downpayment. In this case, you are able to withdraw the funds without penalty and no taxes or interest are payable on the monies while outside of your RRSP. A first-time buyer can be anyone even if you’ve owned a home before. As long as you did not own a home within past 5 years, you qualify as a first-time buyer.

Certain Restrictions Apply:

- Maximum amount withdrawn per person is $20,000.00
- Maximum of 2 First-Time Buyers for the purchase up to a total of $40,000.00 for 2 people ($20,000,00 each)
- The home purchased must be owner occupied
- RRSP must be repaid within 15 years with minimum annual payments 1/15th of the amount withdrawn(failure to do so will eventually result in having it added back to the taxable income in any year the minimum re-deposit is not made)

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