Buying a first home (HBP)

Ready to make the leap and become a homeowner? Follow these five steps to simplify the home buying process and get all the info you need to take advantage of the Home Buyers’ Plan (BHP).

Five steps to buying your first home

1. Figure out your financial situation

  • Meet with a financial adviser to analyze your financial situation
  • Determine your borrowing capacity and how much money you have for a down payment
  • Get a mortgage preapproval 

2. Consider additional costs

  • Mortgage loan insurance: Necessary if your down payment is less than 20% of the purchase price
  • Welcome tax
  • Property appraisal and inspections costs
  • Sales taxes if you buy a new property
  • Moving costs and notary fees
  • Any other related costs 

3. Find the home that’s right for you

  • Define your needs (e.g. type of property, location)
  • Work with a realtor OR do the legwork yourself
  • Make an offer to purchase 

4. Secure the financing

  • Determine your needs
  • Apply for a mortgage
  • Obtain mortgage loan insurance if your down payment is insufficient
  • Request a property appraisal and inspection 

5. Take possession

  • Have a notary record the sale
  • Sign the legal documents
  • The lender will give the mortgage money to the notary
  • Make sure to follow up with a financial advisor

Tap into the HBP for your down payment

The HBP (Home Buyers’ Plan) 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. 

Determine whether you’re eligible for the HBP and have all the documents required to participate.

Contact Shareholder Services to have your request evaluated and to obtain the necessary documents.

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 (provided by Shareholder Services) duly completed and signed
  • The Canada Revenue Agency Form T1036 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?

From the time we receive all your redemption request documents, it will generally take a maximum of 10 opening days to receive your cheque.

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. Also, you must inform the government by filling the cancellation form (see following subject).

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.

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. Expect 10 days from the time we receive all the documents required to process your request for withdrawal. Delays depend on the amount of requests in treatment.

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

Did you know?

As part of our partnership with SSQauto, the Fonds de solidarité FTQ shareholders receive a $25 multiproduct welcome discount on their auto insurance and $25 discount on their home insurance with SSQauto*. This rebate is in addition to any other rebates shareholders may receive when they get an insurance quote.

If you wish to obtain a free insurance quote with no obligation, simply call 1 866 SSQ AUTO (1 866 777-2886) and mention Promo Code FONDS005 or visit https://ssq.ca/fonds-en.

* Certain conditions, restrictions, and exclusions apply. Savings applicable on new auto and home policies.

Please read the prospectus before investing. Copies of the prospectus may be obtained on its Website, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.


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