Who Qualifies as a First-Time Home Buyer for the RRSP Home Buyers' Plan in Ontario?
The RRSP Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP toward a home, and the amount must be repaid to your RRSP over up to 15 years. The first-time buyer test, the holding period and the closing deadline are set by CRA rules, so confirm each one before you withdraw.
A related federal test, for the First Home Savings Account (FHSA), is a useful comparison. Under it, you are a first-time buyer if you have not lived in a qualifying home you owned or jointly owned as your principal residence in the current calendar year or the previous 4 calendar years. If you have a spouse or common-law partner, the same window also looks at a home they owned. Do not assume the Home Buyers' Plan test is identical, so confirm it separately.
You can use the FHSA and the Home Buyers' Plan together for the same qualifying home, as long as you meet all the conditions at the time of each withdrawal. How the holding period and the closing deadline apply turns on your own dates, so check them with the CRA, an accountant or a lawyer before you withdraw.
Key takeaways
- The Home Buyers' Plan withdrawal limit is currently $60,000.
- For the First Home Savings Account, a first-time buyer has not lived in a home they owned in the current calendar year or the previous 4 calendar years.
- The FHSA test also looks at a home owned by your spouse or common-law partner, if you have one.
- You can use the FHSA and the Home Buyers' Plan together for the same qualifying home if you meet the conditions at each withdrawal.