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Greg Thompson
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How does my son use his RSP contributions to help with the downpayment for his first home?

Posted by Clarence Collison to Greg Thompson  ::  Views (1585)

That's a great question.

The Federal Home Buyers Plan allows first time home buyers to withdraw up to $25,000 from their RRSP for the purpose of buying or building a qualifying home. The primary benefits are that the RRSP redemption will not be subject to withholding tax, nor will it be considered income for the given tax year. The amount must be repaid to the RRSP within 15 years with a minimum annual payment of 1/15th of the amount withdrawn. If a repayment is not made for a given year the minimum repayment is included as taxable income for that year. To Participate in this program the RRSP must be withdrawn using the government form T1036.

Realty Executives Alison Ltd. Brokerage

Realty Executives Alison Ltd.


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