Mortgage Watch

The HBP permits an individual and spouse, if any, to use his RRSP to buy a house and pay the related expenses without income tax withholding; provided they return the money obtained in his RRSP over a period of 15 years.


1. I own my home and I buy another property: do I qualify for the program? No

2. I own my home and my new partner lives with me for 1 year: can I use the HBP if we decide to buy a new property? Theoretically not, against, if separated for more than 3 months (change
of address) on non-owner spouse could.

3. I own two rental properties and I do not live there: I can use the HBP if I buy a home now, to go live in? Yes

4. What is the maximum date of purchase RRSP in the current year, to deduct the tax year just
ended? 1st of March

5. I have my RRSP with the Quebec Workers Fund (FTQ): Can I withdraw under the HBP? Yes, but you must prove that the FTQ RRSP are the last to be removed and there is no other
RRSP placed elsewhere.

6. Buying a mobile home on leased land, can I qualify? Yes

7. I have $30000 in RRSPs, can withdraw all of it under the HBP? No, because the maximum
per taxpayer withdrawal under the HBP is $25000

8. My notice of assessment indicates that I have the right to contribute to my RRSP for $7,000, can I contribute $8,500 without penalty? Yes, a surplus contribution of $ 2,000 can be done, but the deduction of the surplus must be applied to the following year.

9. What is the maximum we can withdraw our RRSP under the HBP with no tax penalty? $25,000

10. Can I use my tax return as the only cash for the down payment for the property I want to buy, if the RRSP were bought with borrowed money? Yes, but the customer must qualify in the
CMHC Multi-Source Program and pay the required premium for the CMHC mortgage
insurance.

11. I have $5,000 in RRSPs that I will use as cash down for the purchase of my residence. If my
notice of assessment indicates that I have the right to contribute up to $22,000 in my RRSP, can I make an RRSP loan of $22,000? No, because the total withdrawal would be $ 27,000 and a
taxpayer has the right to withdraw only $25,000 in its RRSP.

12. I have $ 10,000 invested in RRSPs, I want to use these RRSP as down payment for the
purchase of my residence. I signed an offer to purchase with my real estate agent on December
1st, 99. The date of signature at the notary is scheduled for April 1st, 2009.

On the 22nd ofDecember 2008, I withdraw from my RRSP an amount of $2,000. On February 20th, I withdraw the balance of my RRSP, or $8,000. Are these withdrawals will be treated as withdrawn under HBP?

Only the first withdrawal will be considered as HBP, the second $ 8,000 will be taxed. Why?
RRSP withdrawals under the HBP must be made in the same calendar year.