ADVICE

The RAP (Home Ownership Regime)

The RAP (Home Ownership Regime)

The Home Buyers' Plan allows you to become a homeowner by withdrawing up to $35,000 from your RRSP, all tax-free.

Here are some highlights of the HBP:

  • Eligibility: To be eligible for the HBP, you must be a first-time homebuyer or you must have not owned property in the previous four years. You must also be a Canadian resident and have an RRSP. The HBP is also available for buyers who purchase property for a member of their family with a disability.

  • Withdrawal amount: You can withdraw up to $35,000 from your RRSP through the HBP. If you are a couple, you can withdraw up to $35,000 each, for a total of $70,000. The amounts withdrawn are not taxable, but must be repaid within 15 years of withdrawal.

  • Repayment: You must start repaying the HBP amounts two years after the year of withdrawal. You have 15 years to repay the amounts withdrawn, with annual repayments equal to at least 1/15 of the total amount withdrawn. If you do not meet the repayment terms, the amount owing will be added to your taxable income for that year.

  • Use of funds: Funds withdrawn from the HBP must be used to purchase an eligible property. This may include a single-family home, semi-detached home, townhouse, condo or mobile home.The property must be located in Canada and used as a principal residence.
  • Process: To participate in the HBP program, you must complete Form T1036, which is available on the Canada Revenue Agency (CRA) website.Once the form is completed, you must submit it to your financial institution to make your RRSP withdrawals. You can also make partial HBP withdrawals over several years.
  • Tax consequences: If you do not comply with the repayment terms of the HBP, the amount owing will be added to your taxable income for that year.This can result in a significant increase in your income tax for that year. It is therefore important to respect the repayment terms to avoid negative tax consequences.

 

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Rate as of 15/10/2026

* Certain conditions may apply. Subject to change without notice. Rates may vary depending on the amount borrowed, guarantees offered or other factors. Please contact me for more details.

5.05%

Floating rate

5.63%

Term 1 year

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Term 3 years

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