RAP

Home Buyers' Plan (HBP) :
purchase a property with your RRSPs

Contact a broker now to discuss the HBP for your mortgage.

What is the HBP?

The Home Buyers’ Plan (HBP) is a program that can be tremendously helpful for financing your down payment when buying or building a home, condo, cottage, etc. It allows you to use up to $35,000 of your RRSPs (Registered Retirement Savings Plan) without paying taxes on the withdrawn amount for a period of 15 years. The HBP is a bit like lending money to yourself. However, you will have to gradually replace the amount borrowed from your RRSPs. Generally, it is required that you repay at least one-fifteenth of the amount per year. For example, if you withdrew $35,000, you will have to repay approximately $2,334 per year, over a 15-year period.

Tax free... provided you repay your loan!

Multi-Prêts will strongly advise you to follow the repayment schedule of your HBP because you will have to pay tax on all outstanding amounts, which will now be considered as withdrawn from your RRSPs.

Multi-Prêts advises you on the HBP

Working in Laval and on the North Shore, you can count on Victor Hugo Pereira and his team to expertly guide you through the entire HBP process. During your free meeting (find out why our services are free here), your mortgage broker will first determine if you qualify for the Home Buyers’ Plan; as a general rule, you must be a first-time buyer but there are always exceptions.

Your broker will also provide you with all the information you need to make the HBP process work. Based on your unique situation, he or she will answer any questions that you might have, such as:

  • Is it better for me to repay my HBP very quickly or make RRSP contributions?
  • Is it better to take the amount of my down payment directly into my personal savings or to put the amount allocated to my down payment in my RRSPs first and then to "raper" it?
Contact a broker now to discuss the HBP for your mortgage.