The Home Buyers' Plan, or HBP, allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plans, or RRSPs, to buy or build a home without paying taxes or penalties on the amounts withdrawn.
The dwelling (house, condo, plex, etc.) must be considered the principal residence, maybe new or existing.Want to take advantage of the best mortgage rates? Mortgage Pre-Approval Application
Under the HBP, you can withdraw up to $35,000 from your RRSPs.
If you are two owners, for example, a couple, each owner can withdraw up to $35,000 from their RRSPs, for a total of $70,000 for each home.
Note that some RRSPs, such as locked-in or group RRSPs, do not allow any premature withdrawals, even under the HBP.
Empruntez des sommes dans votre REER sans payer de pénalités, d’intérêts et d’impôts.
En « rapant », vous maximiserez votre mise de fonds, réduisant votre emprunt hypothécaire. Ainsi, vous serez en mesure de rembourser votre hypothèque plus rapidement. Au final, vous économiserez des sommes significatives en intérêts.
Borrow money from your RRSP without paying penalties, interest, and taxes.
By "raping," you will maximize your down payment, reducing your mortgage loan. This way, you will be able to pay off your mortgage faster. In the end, you will save significant amounts in interest.
Avoid paying for mortgage loan insurance.
If your down payment is less than 20% of your home's purchase price, you will need to obtain mortgage loan insurance provided by Canada Mortgage and Housing Corporation (CMHC). As a result, the interest rates offered to you will be significantly higher than what you could get with a down payment of 20% or more.
Some financial institutions may even require a down payment higher than 20%, especially if you are self-employed or have a poor credit history. The HBP could help you provide the down payment you need to get the best possible interest rate. You will therefore avoid having to pay for mortgage loan insurance.
Use the funds as you wish
Although the money obtained through the HBP is generally intended as a down payment, you still have the freedom to use it as you wish. Therefore, you could use the HBP to have more liquidity to cover the expenses that accompany the purchase of a property (transfer taxes, furnishings, renovations, etc.).
You have 15 years to repay all the funds you withdrew from your RRSPs for the HBP.
However, you can start repaying the money in the second year after the year in which the funds were withdrawn. If, for example, you "rapped" in 2020, repayments will have to start in 2022 and end 15 years later.
However, it is possible to start repaying the amounts in the first year.
The Canada Revenue Agency will determine the minimum repayment to be made each year for 15 years, with equal payments. Note that you have the option of repaying all or the balance of the amounts withdrawn at any time.
For more information on HBP reimbursements, please refer to the ARC .
To be eligible for the Home Buyers' Plan, you must :
Good to know
Laurentian Bank of Canada
Fair Trade Bank
TD Canada Trust
CHIP - Residential Income Program
First National Financial
Merix Financial - Lendwise
CMHC - CMHC
Mortgage Protection Plan
IA Industrial Alliance
West of Montreal
2892 Saint-Charles Boulevard
Kirkland, Quebec H9H 3B6
T : 438 799-5776
F : 514 906-7011
7655 Newman Boulevard, Suite 306
Lasalle, Quebec H8N 1X7
T : 438 806-9659
F : 514 879-8927
28 Dubois Street
Saint-Eustache, Quebec J7P 4W9
T : 438 834-3137
F : 514 906-6612
399 des Laurentides highway, suite 203
Laval, Quebec H7L 3H7
T : 438 806-9471
F : 514 906-6612
180 Saint-Charles Avenue
Vaudreuil-Dorion (Quebec) J7V 2L1
T : 1 866 919-8767
F : 1 888 769-7464
30 years of mortgage history
|Current rates as of|
|Mortgage product||Posted rates|
|5 years variable||3,70 % *||2,75 %|
|1 year||4,79 %||3,64 %|
|2 years||5,34 %||4,39 %|
|3 years||5,44 %||4,49 %|
|4 years||5,64 %||4,59 %|
|5 years||5,84%||4,84 %|
|7 years||6.14 %||5,14 %|
|10 years||6,54 %||5,34 %|
|*Represents the Prime Rate. Some conditions apply, subject to change without prior notice.|
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