RRSP Home Buyers' Plan The RRSP Home Buyers' Plan allows an individual to withdrawal up to $20,000.00 from their RRSP to buy or build a qualifying home. Amounts withdrawn do not have to be taken into your income, and the RRSP issuer will not withhold any tax on these funds. Participation Requirements: You must make your request for withdrawal before January 1st You have to buy or build a qualifying home before October 1st You must be a resident of Canada You must have entered into a written agreement to buy a qualifying home at the time you withdraw funds. You have to be considered a first-time homebuyer. To be considered a first-time homebuyer you cannot have owned a home at any time during the period beginning January 1st, 1998, and ending 31 days before your withdrawal. You have to intend to occupy the qualifying home as a principal place of residence (Once you occupy the home, there is no minimum period of time that you have to live there) Neither you or your spouse own the qualifying home thirty days before a withdrawal is made You have to receive all withdrawals in the previous year Your home buyers' plan balance on January 1st has to be zero Repayment of Your Withdrawals Over a period of no more than fifteen years, you have to repay the amounts you have withdrawn under the Home Buyers' Plan. Beginning in the fall, the government will send you an annual statement that will advise you of: The amount you have to repay the next year (1/15 of amount withdrawn) The balance to be repaid; and The amounts you have repaid Example: The first repayment under the Home Buyer’s Plan for 2003 participants must be made no later than March 1st, 2003. You have the option of designating all or part of your RRSP contribution as a repayment under the Home Buyer’s Plan for 2005. Repayments can be made before 2003 at your discretion. To designate your repayment for 2005, you must complete Schedule 7, RRSP unclaimed Contributions, Transfers, and Designations of Repayments Under the Home Buyer’s Plan (in your tax package), and file it with your 2005 tax return. If you repay less than the minimum, you will have to include the difference in your income for that year.