Under the RRSP Home Buyers Plan a first-time home buyer can now withdraw tax free from a Registered Retirement Savings plan to purchase or build a new home up to $25,000 ($50,000 per couple); this is up from $20,000. Under this plan participants must begin repayment two years after withdrawing the funds. The withdrawal amount is completely repaid over a period of 15 years interest free. You may also participate in the Home Buyers Plan more than once as long as you repaid your previous withdrawal in full and within the prescribed time period. As the March 1st RRSP deadline is approaching one point to remember is your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP.
For more information you can go to www.cra-arc.gc.ca
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