RRSP Home Buyer’s Plan

The Home Buyer’s Plan is a program declared by government which allows home buyer’s to withdraw up to $25,000 from their Registered Retirement Saving’s Plan (RRSP) for purchasing or building a qualifying house for related person with a disability or for yourself through a written agreement.

For taking advantage of this program, you have to be a first-time buyer. If you are not first-time buyer then following stated terms will help to achieve profit from this program.

1. If you or your spouse owned a house that you occupied as a principal place of residence in past 5 years.

2. If you are a person with disabilty or related person is with disabilty then you are eligible for this plan but you or your parnter ( whosoever is the person with disabilty) must qualify for the Disabilty Tax Credit (DTC).

Once the aforementioned conditions are satisfied, each person can withdraw amount upto $25,000 from RRSP for new house without tax. Moreover, Couples can withdraw upto $50,000 if they duly fulfil the conditions.