Home Buyer's Plan (HBP)

Home buyer's plan (HBP)

The federal Home Buyers' Plan is an effective home financing tool, originally promoted by REAL ESTATE BROKERS as a way for the government to support home ownership. Since the Home Buyers' Plan was introduced in 1992, more than two million homes have been purchased by first-time home buyers using their RRSP investments.

Under the terms of the Plan, individuals who enter into an agreement to buy a home can borrow up to $25,000 from their RRSPs. Because there are usually two participants involved in the purchase of a home, a maximum of $50,000 is available from individual RRSPs to be used for the down payment. Individuals have 15 years to repay the funds withdrawn from their RRSPs without incurring any penalties.

Bernard Haché

Bernard Haché

Real Estate Broker
CENTURY 21 Action Power Team Ltd., Brokerage*
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