Funds can be withdrawn, without paying any tax, from your RRSP account to pay for a down-payment on a home. The maximum amount is $25,000 and the RRSP contributions have to be in your account for at least 90 days before they can be withdrawn to purchase a home. The funds need to payed back to the RRSP in no more than 15 years. The following are some of the conditions to be eligible:
- You have to be considered a first time buyer. You are not considered a first time buyer if, at any time during the period between January 1 of the fourth year before the year of withdrawal and ending 31 days before the date of withdrawal, you or your spouse or common-law partner owned a home that you occupied as a principle place of residence. If, at the time of the withdrawal, you have a spouse or partner that has owned a home it is possible that only one of you would be considered a first time buyer.
- You have to be a resident of Canada.
- You must complete Form T1036 for eligible withdrawal.
- You have to intend to occupy the home as your principle place of residence no later than one year after buying or building it.