Épargne Placements Québec

What is it?

Épargne Placements Québec’s registered retirement savings plan (RRSP) gives you the option of temporarily withdrawing funds under the Home Buyers’ Plan (HBP).

Under the HBP, you can withdraw up to $35 000 from your RRSP to buy or build a qualifying home. To do so, you must be considered a first-time home buyer.

The advantage of the program is that you can withdraw the amount tax free. The funds must have been in your RRSP for a minimum of 90 days for the withdrawal to qualify.

If you are married or have a de facto spouse and you both wish to own the home, you can each withdraw $35 000 ($70 000 in total).

When do you have to start paying it back?

You have to begin paying back the amounts withdrawn from your RRSP as of the second year following the one in which you make the withdrawal under the HBP. Generally speaking, you then have 15 years to repay the amount withdrawn from your RRSP.

How much do you have to pay back each year?

Each year, the Canada Revenue Agency will send you a statement indicating:

  • the amount repaid to date (including any additional payments and amounts included on your income tax and benefit returns because they have not been repaid);
  • the balance to be repaid;
  • the amount you must contribute to your RRSP the following year as an HBP repayment.

The amount to be repaid each year is 1/15 of the amount withdrawn under the HBP. Amounts that are not repaid when due become taxable for the year in which they were to be repaid. Furthermore, amounts repaid are not considered RRSP contributions and as such, are not tax deductible.

In the event of a change to these conditions, please note that the Canada Revenue Agency’s rules take precedence over this text.

For further information, consult the Canada Revenue Agency website.