Home Buyers' Plan (HBP)

The Home Buyers' Plan (HBP) is a government program that allows you to withdraw up to $35,000 from your RRSP to help you buy a home. You can withdraw the money over a period of up to 15 years, and you have to repay it within 15 years of the end of the year in which you made the withdrawal.

There are a few things to keep in mind if you're thinking about using the HBP. First, you need to have a valid RRSP. Second, you need to have a down payment of at least 5% of the purchase price of the home. Third, you need to use the money to buy or build a home within 12 months of making the withdrawal.

If you meet all of these requirements, you can withdraw up to $35,000 from your RRSP. The money will be taxed as income when you withdraw it, but you won't have to pay any withholding taxes.

You have to repay the HBP over a period of up to 15 years. You can make payments as often as you like, but you must make at least one payment each year. The repayments are added to your taxable income for the year in which you make them.

There are a few advantages to using the HBP. First, it can help you save for a down payment on a home. Second, it can give you access to money that you might not otherwise have. Third, the interest on your RRSP contributions is tax-deductible, so you can save money on taxes.

There are also a few disadvantages to using the HBP. First, you have to repay the money, which can add to your monthly expenses. Second, you have to pay taxes on the money when you withdraw it. Third, you may not be able to contribute to your RRSP for the year in which you make the withdrawal.

If you're considering using the HBP, you should talk to your financial advisor to make sure it's the right decision for you.