The Home Buyers’ Plan (HBP) limit has been increased from $35,000 to $60,000 per person … and the repayment has been changed from 15 years to a payment holiday for the first 5 years thereby extending the overall repayment requirement to 20 years. Of course, you can pay it back quicker.
This is attractive because it is an interest free loan. If you other debts that have interest rates that exceed 0%, then you will be better off repaying those debts.
The Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a specified disabled person.
First-time home buyer – you will be considered to be a first-time home buyer if you did not, at any time in the current calendar year before the withdrawal (except the 30 days immediately before the withdrawal) or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either you owned or jointly-owned, or your current spouse or common-law partner (at the time of the withdrawal) owned or jointly-owned. For example, if you are making a withdrawal on July 31, 2025, the period is from January 1, 2021 to June 30, 2025.
A housing unit located in Canada. This includes existing homes and those being constructed.
The following all qualify:
- single-family homes
- semi-detached homes
- townhouses
- mobile homes
- apartments in:
- duplexes
- triplexes
- fourplexes
- apartment buildings
- condominium units
A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in a housing unit located in Canada, also qualifies.
For condominium units, you are considered to own the unit the day you are entitled to immediate vacant possession of it.
