RRSP Home Buyers' Plan

The Home Buyers’ Plan (HBP), a program offered by the Government of Canada, is designed to help Canadians with making the big move of purchasing their first home. The program allows RRSP account holders to withdraw money out of their account tax-free when the proceeds are used towards purchasing a qualifying home. Once you withdraw the funds, you have up to 15 years to pay it back. There is currently a five year grace period before repayments begin. Please note: The extended grace period currently applies to HBP withdrawals made between January 1, 2022, and December 31, 2025.

Unless you have a disability (or are helping a relative who has one) to buy or build a home, you have to be a first-time home buyer to qualify for this program. To be considered as a first-time home buyer, you must have not owned a home which is your principal residence in the last 4 years before withdrawing the funds from your RRSP for a home purchase. As well, RRSP contributions must be held in the RRSP for at least 90 days before they qualify to be withdrawn to participate in the HBP.

To get a more in-depth information about the Home Buyers' Plan, please take a look at this helpful page from the CRA website.

Note that qualifying account holders can withdraw funds from more than one RRSP account. For example, if you and your spouse each have an individual RRSP and choose to participate in the plan, you can withdraw a combined maximum of $60,000 per person for a total of $120,000. If you have an individual RRSP and also a Spousal RRSP, you can withdraw a combined maximum of $60,000 CAD (or CAD-equivalent) under the HBP.

If you qualify for the HBP and wish to participate in the program, there are six main steps you have to follow and complete:

1. Questrade self-directed accounts: sell shares to ensure funds are available for HBP withdrawal.
   Questwealth (QWP) accounts: start from step 2.
   
2. Complete the CRA Home Buyers’ Plan form and digital sign it.
3. Complete the Questrade’s Home Buyers’ Plan (HBP) RRSP withdrawal request form and digital sign it.
4. Upload both CRA HBP form and Questrade’s HBP withdrawal request form under Account Management>Upload Documents> Document Type> RRSP Home Buyers Plan in your Questrade account.
   Please note: Please do not create a withdrawal request here as you will incur withholding taxes.
   
5. Upload void cheque or direct deposit form to your Questrade account.
6. Monitor status through Account Management>Upload documents>Upload history.
• Please monitor and wait for your upload status to change from Pending Review to Complete which typically takes 5-10 business days. Ensure your documents are complete and without any discrepancies. If there’s any discrepancies in your uploaded documents, your status will change to Rejected and you will receive an email highlighting the details of the rejection. Please keep an eye on your email if you get a rejected document.

Please note: You need to submit the 2 forms (CRA Home Buyers' Plan and Questrade’s HBP withdrawal request form) and your banking details (through void cheque or direct deposit form) for us to start processing your application.

Document	Instructions
CRA Home Buyer's Plan application	Download and fill out the CRA Home Buyers’ Plan form Scan and upload to your Questrade account To upload your CRA HBP application form, log in to your Questrade account and go to Accounts > Account management > Upload documents. Please select “RRSP Home Buyers Plan” under Document type when uploading this document.
Questrade - Home Buyers' Plan RRSP Withdrawal Request	Download and complete the Questrade’s HBP withdrawal request form here and digital sign Upload the bank details to your Questrade account To upload your HBP withdrawal request form, log in to your Questrade account and go to Accounts > Account management > Upload documents. Please select “RRSP Home Buyers Plan” under Document type when uploading this document. Note: There are various withdrawal options on this form. Processing times will vary, depending on the withdrawal method you choose. For more information, please check overall processing time below this section.
Void cheque or direct deposit form	Please ensure your name and banking details on these forms match exactly the same as the information on the Questrade HBP withdrawal request form. The bank account holder should be the same as the RRSP account holder. Upload the from to your Questrade account To upload your void cheque or direct deposit, log in to your Questrade account and go to Accounts > Account management > Upload documents. Please select “Void cheque” or “Direct deposit” under Document type when uploading this document.

Fees: There are no withholding taxes for HBP withdrawals, but the standard de-registration fee applies ($25+GST/HST for partial, $50+GST/HST for full).

The processing time is typically 5–10 business days from when your documents are correctly filled out and arrive at Questrade to when the HBP funds are available in your bank account. This includes:

• Our time to process the documents (1–2 business days).
• Number of days for the money to appear in your bank account once we have sent it to your bank. This varies, depending on the withdrawal method you use:
• Electronic funds transfer - up to 5 business days
• Wire transfer - 1–2 business days. Please note: Currently, Tangerine, EQ Bank, Transferwise, and Motus do not accept incoming wire transfers or make outgoing wire transfers. As a result, withdrawals to Tangerine, EQ Bank, Transferwise, and Motus via wire transfer are not accepted at this time.
• Cheques - 10+ business days

Please allow enough time for mailed or couriered documents to arrive. Processing of your documents starts as soon as we receive your scanned digital documents.

Here are some key things you should know about the home buyers' plan:

• You can fund a qualifying home with both the HBP and an FHSA
• You have to be a Canadian resident to benefit from this program
• All withdrawals from an RRSP for the HBP must be made within the same calendar year
• Normally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP
• For more details on unlocking or withdrawing from a locked-in retirement plan (LIRA, L-RSP, etc.), please check out this article.
• If you hold both a Spousal RRSP and a "regular" (individual) RRSP, your combined maximum withdrawal amount under the HBP is $60,000 CAD (or CAD-equivalent)

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.