Published: April 17, 2020
Last Updated: May 21, 2020
Home Buyer’s Plan
A Tax Court of Canada decision confirmed that an individual who withdraws money from an RRSP as part of the Home Buyer’s Program must still make the required annual repayments to the RRSP even if the house has been acquired by a spouse as part of marriage dissolution, or be taxable under the Canadian Income Tax Act.
The Home Buyers’ Plan allows first time home buyers to withdraw up to $20,000 from their Registered Retirement Savings Plans (RRSP’s) free of Canadian Income Tax to assist in the purchase of a home and to repay the amount over 15 years.
If you are thinking of buying a house, you should be aware that the Home Buyers Plan allows qualified taxpayers to use up to $20,000 from their RRSP when buying a home. To qualify, neither you nor your spouse may have owned a home in the last five years.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."