2019 Changes to The Home Buyers’ Plan

The home buyers’ plan (HBP) helps first-time home buyers save for a down payment by allowing them to withdraw from their registered retirement savings plan (RRSP) to purchase or build a home without having to pay tax on the withdrawal.

Who The Home Buyers’ Plan is for

You are considered a first-time home buyer if you or your spouse or common-law partner have not owned a home that you occupied as your principal residence at any time during the relevant calendar year or in any of the four preceding calendar years.

2019 HBP withdrawal limit increased by $10,000

To provide first-time home buyers with greater access to their RRSPs the budget proposes to increase the HBP withdrawal limit to $35,000 from $25,000. As a result, a couple will potentially be able to withdraw $70,000 from their RRSPs to purchase a first home. This will be available for withdrawals made after March 19, 2019.

New provisions for separated partners

To help those who have experienced a breakdown in their marriage or common-law partnership, the budget also proposes that these individuals may be permitted to participate in the HBP, even if they do not meet the first-time home buyer requirement. This is provided that they live separate and apart from their spouse or common-law partner for a period of at least 90 days as a result of a breakdown in their marriage or common-law partnership. Certain other conditions also need to be met. This measure will be available for HBP withdrawals made after 2019.

More helpful home buying articles

Whether you’re a first time home buyer or seasoned real estate investor when you’re looking to buy a home, there are often many things you need to consider and questions you need answered. Here are some additional articles you may find helpful.