The Federal Government allows you to withdraw up to $20,000. from your RRSPs to buy or build a qualifying home under their RRSP Home Buyers Plan (HBP), without attracting any income tax as long as they are repaid to an RRSP over a period of no more than 15 years. In each year of your repayment period, you have to repay 1/15 of your original balance HBP balance until the full amount is reapid to your RRSP. Your repayment period starts the second year following the year you made your withdrawals. If you do not repay the amount due for a year, it will be included in your income for that year.

Requirements:
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 of the year of the withdrawal has to be zero.

Neither you nor your spouse or common-law partner can own the qualifying home more than 30 days before a withdrawal is made.

You have to be a resident of Canada.

You have to complete Form T1036 for each eligible withdrawal.

You have to receive all withdrawals in the same calendar year.

You cannot withdraw more than $20,000.

You have to buy or build the qualifying home before October 1 of the year after the year of the withdrawal.

*For more information please visit: www.cra-arc.gc.ca