Are you a first-time home buyer?

Unless you are a person with a disability or you are helping a related person with a disability buy or build a qualifying home, you have to be a first-time home buyer to withdraw funds from your RRSP(s) to buy or build a qualifying home.

You are considered a first-time home buyer if, in the four year period, you did not occupy a home that you or your current spouse or common-law partner owned.

The four-year period

Begins on January 1^st of the fourth year before the year you withdraw funds.

Ends 31 days before the date you withdraw the funds.

For example, if you withdraw funds on March 31, 2017, the four-year period begins on January 1, 2013 and ends on February 28, 2017.

Can you participate in the HBP later?

If you are not considered a first-time buyer now, you may be considered a first-time home buyer later, once the four-year period has passed.

For example, if in 2011 you sold the home you lived in before, you may be able to participate in 2016. Or if you sold the home in 2012, you may be able to participate in 2017.

Are you building or buying a qualifying home?

You are considered to buy or build a qualifying home if:

• you buy or build it, or you are considered as buying or building it, before October 1^st of the year after the year of the withdrawal;
• you buy or build it, alone or with one or more individuals.

If you do not buy or build the qualifying home before October 1^st of the year after the year you withdrew the funds, you can:

• cancel your participation in the HBP;
• buy or build a different home (replacement property) before October 1^st of the year after the year you withdrew the funds.

A replacement property has to meet the same conditions as a qualifying home. To inform us that you are buying or building a replacement property, send a letter to the following address:

Pension Workflow Section
Ottawa Technology Centre
875 Heron Road
Ottawa ON K1A 1A2

Give your name, address, and social insurance number, as well as the address of the replacement property. You have to say in the letter that you intend to occupy the replacement property as your principal place of residence within one year after you buy or build it.

Extensions for buying or building a qualifying home or replacement property

If you do not buy or build the qualifying home you indicated on Form T1036 (or a replacement property) before October 1^st of the year after the year you withdrew the funds, we still consider you to have met the deadline if either of the following situations applies:

• You had a written agreement, in effect on October 1^st of the year after the year you withdrew the funds, to buy a qualifying home or replacement property, and you buy the property before October 1^st of the second year after the year of the withdrawal. In addition, you were a Canadian resident up to the time of purchase.
• You had paid an amount after the date of the first withdrawal and before October 1^st of the year after the year you withdrew the funds to the contractors or suppliers (with whom you deal at arm's length) for materials for the home being built, or towards its construction, that was at least equal to the total of all withdrawals under the HBP.

• You have to be a resident of Canada at the time of the withdrawal.
• You have to receive or be considered to have received, all withdrawals in the same calendar year.
• You cannot withdraw more than $25,000.
• Only the person who is entitled to receive payments from the RRSP can withdraw funds from an RRSP. You can withdraw funds from more than one RRSP as long as you are the owner of each RRSP. Your RRSP issuer will not withhold tax on withdraw amounts of $25,000 or less.
• Normally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP.
• Your RRSP contributions must stay in the RRSP for at least 90 days before you can withdraw them under the HBP. If this is not the case, the contributions may not be deductible for any year.
• Neither you nor your spouse or common-law partner or the related person with a disability that you buy or build the qualifying home for can own the qualifying home more than 30 days before the withdrawal is made.
• You have to buy or build a qualifying home for yourself, for a related person with a disability, or to help a related person with a disability buy or build a qualifying home before October 1^st of the year after the year of the withdrawal.
• You have to fill out Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP for each eligible withdrawal.

Are you a resident of Canada?

You have to be a resident of Canada when you receive funds from your RRSPs under the HBP and up to the time you buy or build a qualifying home. For more information about residency status, see Residency status or call 1-800-959-8281 (toll free within Canada and the United States), or 613-940-8495 (from outside Canada and the United States). We accept collect calls by automated response. You may hear a beep and experience a normal connection delay.

If you become a non-resident after a qualifying home is bought or built, you cannot cancel your participation in the HBP. However, special rules will apply to the repayment of your HBP balance. For more information, see The HBP participant becomes a non-resident.