Home Buyers' Plan

Your RRSP. Your first home!

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw funds from your RRSP for a down payment on a home.
Eligibility conditions
You can participate in the HBP if you are a first-time home buyer or if you or your spouse has not owned a home that you occupied as your principal place of residence in the last five years.

There is no restriction as to the type of housing (single family home, condo, etc.); however, it must be your principal place of residence.

In the case of a couple, each spouse may withdraw up to $25,000 from their RRSP without tax consequences at the time of withdrawal.

However, before you can dip into your Fonds RRSP to participate in the HBP, you must have used up all your other RRSPs. Moreover, you must agree to make the repayments to the Fonds.
Repaying your RRSP
You have 15 years to repay your RRSP. These repayments must begin no later than 60 days after the end of the second year following the date of withdrawal and must equal at least 1/15th of the amount withdrawn.

Example:
You withdrew $15,000 from your RRSP in March 2010. Your first repayment will therefore be at least $1,000 (1/15th of $15,000) and will have to be made no later than March 1, 2013.

It pays to repay your Fonds RRSP!

Did you know that by repaying the amounts withdrawn from another RRSP to your Fonds RRSP you are eligible for the 30% tax credits on the repayments?

That means a savings of $300 for each $1,000 repaid. That’s a lot of money!

For more information on the HBP, visit the Canada Revenue Agency site at www.cra-arc.gc.ca
Redemption criteria
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder must be eligible for the Home Buyers’ Plan by withdrawing funds from an RRSP
AND
must have previously used all his other RRSPs
AND
must have agreed to make the repayments to the Fonds.

The Fonds' “Redemption Request – Access to Home Ownership” form
AND
the government form (if applicable)
AND
one of the following proofs of purchase
indicating the address of the dwelling:
  • accepted offer to purchase;
  • construction contract;
  • construction permit with proof of land ownership.
AND
proof that the request to cash in other RRSPs was submitted to all the financial institutions involved.
ELIGIBLE SHARES
All Shares issued for at least 90 days, up to the maximum amount allowed by the plan.
SUBSEQUENT ACQUISITION OF SHARES
At any time.
PAYMENT TERMS AND CONDITIONS
All eligible Shares, up to the maximum allowed by the plan.
Eligible Shares can be redeemed in a maximum of two payments.
Contribute to the Fonds RRSP
Tax reduction calculator

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Did you know?

Thanks to its shareholders’ savings, the Fonds and its network support the development of nearly 2,100 Québec businesses.

* As at May 31, 2010.

Fonds de solidarité FTQ © 2011