RRSP Home Buyers’ Plan (HBP) The Home Buyers’ Plan (HBP) is a Federal Government program under which you are allowed to withdraw up to $25,000 from your registered retirement savings plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability. 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. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home. If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $25,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal. Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year. Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year. An easy way to increase the down payment you will use for your purchase is to obtain an RRSP loan from your bank and use this to open an HBP plan, at least 90 days before your closing date. Then withdraw the maximum and use it for the down payment. You will then have a tax benefit for the RRSP contribution and have up to 15 years to repay this amount back to your RRSP, tax free.