The Canadian government’s Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) for a down payment, to buy or build a qualifying home for yourself or for a related person with a disability. The plan allows for you to borrow up to $35,000 (tax-free) from your RRSP, which you must then repay within a 15 year period, beginning two years after the purchase of your home. You must also agree to repay at least 1/15th of the withdrawal amount each year.
While you can’t use this plan to purchase a secondary home, the property does not necessarily need to be a single family home– meaning you could also take advantage of this plan to buy a multi-unit property, which can be used for investment purposes.
To qualify, you must be a first time home buyer, or have not owned a property within the last four years. To determine your eligibility, or to apply for the HBP, you must fill out the “T1036 Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP” form, which can be found on the CRA website.
To learn more about the Home Buyers’ Plan for physicians, or to determine if it’s right for you, contact one of our financial advisors who will be happy to work with you throughout the process here.