Category — Property

The home buyers plan allows a first time home buyer to use up to $25,000 of you RRSP’s to purchase or build a qualifying house.

Here are the conditions to qualify:

• The RRSP’s must be in your account for at least 90 days, or you cannot use them for the purchase.
• The house must be your principal residence, or for a relative with a disability.
• You or your spouse have to be a first time home buyer (or not owned a house as a principal residence for 4 years – more info).

Repayments

You have 15 years to repay the amount you took out of your RRSP, in this case you must contribute to your RRSP account and not your spouse’s account.

If you do not meet the minimum payment or fail to pay anything into your RRSP plan for the year, the payment amount needs to be entered onto line 129 of the return and you will be required to pay tax on that amount.

CRA source