What is the Home Buyer Program?
The following quote is direct from Revenue Canada's web site.
"The HBP is a program under which you can, generally, withdraw up to $20,000 from your registered retirement savings plans (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. You can withdraw an amount or make a series of withdrawals throughout 2004, provided the total of your withdrawals does not exceed $20,000. If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $20,000.
Under the HBP, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. Generally, you will have to repay an amount to your RRSPs each year until you have repaid all the amount you withdrew. If you do not repay the amount due for a year, it will be included in your income for that year."
Conditions you have to meet before applying to withdraw funds under the HBP
- You have to enter into a written agreement to buy or build a qualifying home
- You have to intend to occupy the qualifying home as your principal place of residence
- You have to be considered a first time home buyer
- Your HBP balance on January 1, 2004, has to be zero
- Neither you or your spouse own the qualifying home 30 days before the withdrawal
- You have to be a resident of Canada
- You have to complete Form T1036
- You have to receive all withdrawals in 2004
- You cannot withdraw more than $20,000
- You have to buy or build the qualifying home before October 1, 2005
If you have more questions about the Home Buyers Program, contact us or check out Revenue Canada's site.
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