What are the eligibility requirements for the RRSP Home Buyers’ Plan?
In order to be eligible as a first-time homebuyer, you must meet the following criteria1:
- RRSP funds you borrow must be in your account for at least 90 days prior to withdrawal
- You cannot have owned a home within the previous four years
- If you are buying with a spouse (or common law partner) who is not a first-time homebuyer, you cannot have lived in a house they owned for 4 years
- You have entered into a written agreement to buy or build a qualifying home
- You must intend to live in the home within one year of purchase as your primary residence
- If you have used the Home Buyers' Plan before, you cannot have any outstanding balance due
- You must make the withdrawal from your RRSP within 30 days of taking the title of the home
- You must be a Canadian resident
If you make a withdrawal from your RRSP, but do not meet the first-time homebuyer eligibility requirements, this withdrawal will be taxed, and you must include it on your income tax return as taxable income.