Buying a first home (HBP)

You do not currently have enough money for a down payment?

The Home Buyers’ Plan (BHP) is a government plan under which you can, without paying any taxes, use the money accumulated in your RRSP as down payment when you buy your first home.

How does it work?

What are the eligibility criteria?

You are eligible for the HBP if you are buying your first home or if you and your spouse did not own a home that you occupied as your principal place of residence during the last 5 years.

Each spouse can withdraw up to $25,000 from their RRSP without paying any taxes. You will however have to repay your withdrawal afterwards.

Can I cash in all my Fonds shares as part of the HBP?

The first redemption condition is to have previously used all your other RRSPs. In such case, all shares held in an RRSP or spousal RRSP for at least 90 days, up to the maximum amount allowed under the HBP, can be redeemed in a maximum of two payments.

Which documents must I provide?

To avoid any delays in processing your request, make sure that you have all the following documents:

  • The Fonds “Redemption Request – Access to Home Ownership” form duly completed and signed
  • The Canada Revenue Agency Form T2036 duly completed and signed
  • Proof that the request to cash in other RRSPs was submitted to all the financial institutions involved
  • 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
Once I have sent my redemption request, how long will it take to receive my cheque?

Allow 30 days from the time we receive all your redemption request documents to receive your cheque.

However, our objective is to bring this period to two weeks whenever possible.

How can you repay your withdrawals?

What are the repayment terms?

You must repay your withdrawals over a maximum of 15 years.

You must make your first repayment no later than 60 days after the end of the second year following the date of withdrawal, and the amount of this repayment must be at least 1/15 of the amount you withdrew.

Example: If, in October 2013, you withdrew an amount from your RRSP (corresponding to all or a part of your RRSP), you would have until March 1, 2016 to repay 1/15 of the amount withdrawn.

How do I repay my Fonds RRSP?

Any purchases of Fonds shares made between March 1 of a year an amount is due and the 60th year of the following year will automatically be considered as a repayment under the HBP.

In addition, any subscriptions exceeding the amount due will be considered as share purchases giving right to the Fonds tax credits and the RRSP deductions. In the event you make your repayment through payroll deductions (with immediate tax savings), we recommend that you contact a Shareholder Services’ employee to learn the impact of the immediate tax savings in connection with the HBP.

How do I track amounts due and repaid?

Each year, you will receive from the Canada Revenue Agency a document certifying your HBP withdrawals and repayments.

In addition, the Fonds will send you each year a statement detailing the amounts repaid to the Fonds for the portion related to the labour-sponsored fund tax credits.

What happens if the annual repayment to the Fonds is not made by the prescribed deadline?

The Fonds will have to issue a Relevé 10 evidencing a special tax on the amount due. This special tax is equal to 30% (15% for each level of government) of the annual amount due but not repaid.

Furthermore, you will have to add the amount due to your taxable income.

Can I, in certain circumstances, be exempted from repaying the Fonds RRSP?

Yes. You could be exempted if you invoke one of the redemption criteria set out in the Fonds’ Incorporating Act or the purchase-by-agreement policy. Depending on the criterion invoked, the exemption could be temporary or permanent.

For more information, please refer to the Fonds’ prospectus or contact Shareholder Services.

Cancelling an HBP

Can I cancel my participation in the HBP?

If you are unable to buy or build a home, you must cancel your participation in the HBP by December 31 of the year following the year of the withdrawal.

In such case, you must send us a cheque (to the order of the Fonds de solidarité FTQ) for the amount* of the shares redeemed, accompanied by a note stating that you are cancelling your participation.

Afterwards, we will issue you an RRSP tax receipt that you must attach to the Canada Revenue Agency cancellation form.

* Please take note that shares are purchased at the price prevailing when you cancel your participation. The value of the Fonds shares fluctuates. Please refer to the prospectus.

Where can I find the cancellation form and the HBP guide?

Don’t miss a deadline!

  1. Only shares held in an RRSP or spousal RRSP for at least 90 days can be redeemed.
  2. You have 30 days from the date the purchase of your house is notarized to withdraw amounts from your RRSP.
  3. Allow 30 days from the time you file your withdrawal request, together with all required documents, to receive the cheque formalizing the Fonds’ disbursement.

For more information on buying a first home, please refer to the Fonds’ prospectus or contact Shareholder Services.

Did you know?

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