How to withdraw funds from RRSP(s) under the Home Buyers' Plan (HBP)
Before applying to withdraw funds under the HBP, see How to participate in the Home Buyers’ Plan (HBP) to make sure you are eligible.
Making your withdrawal
To withdraw funds from your RRSPs under the HBP, fill out Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP. You have to fill out this form for each withdrawal you make.
After filling out Area 1 of Form T1036, give it to your RRSP issuer. The issuer must fill out Area 2.
You can withdraw a single amount or make a series of withdrawals in the same calendar year.
If you receive a withdrawal in one year and another in January of the following year, we consider the January withdrawal to have been received in the year the first withdrawal was made.
If the January withdrawal is received before you acquire your qualifying home, or no later than 30 days after you acquire it, and all the other relevant conditions described in the chart below are met, it is an eligible withdrawal. For this purpose, your HBP balance on January 1st is not a relevant condition and does not have to be zero.
If you meet the applicable HBP conditions, you cannot withdraw more than $25,000. Your RRSP issuer will not withhold tax from the funds you withdraw that total $25,000 or less.
An amount exceeding $25,000 will have to be reported as income on your income tax and benefit return for the year you received it. In addition, your RRSP issuer will have to withhold tax on the amount in excess at the time of the withdrawal.
Your RRSP deduction may be affected by your participation in the HBP
If you participate in the HBP, certain rules limit the deduction of your RRSP contributions made during the 89 day period before you withdrew funds under the HBP. Under these rules, you may not be able to deduct part or all of the contributions made during this period for any year.
During that period, you cannot deduct the amount by which the total of your contributions to an RRSP is more than the fair market value of that RRSP after the withdrawal.
The same rules apply if you contributed to your spouse's or common-law partner's RRSP during the 89 day period before that individual made the withdrawal from the same RRSP under the HBP.
In other words, for contributions made to an RRSP in the 89 day period to be fully deductible, the value of that RRSP after you withdrew funds must be at least equal to those contributions.
To determine the part of the contributions you or your spouse or common-law partner made to an RRSP that are not deductible for any year, you can use the calculation that follows.
Calculating the part of the contribution(s) you or your spouse or
common-law partner made to an RRSP that are not deductible for any year
Make a separate calculation for each withdrawal made under the HBP.
Area 1 – If you are the only one who contributed to your RRSP during the 89-day period just before you withdrew an amount from that RRSP, complete the following calculation.
1. Amounts you contributed to the RRSP during the 89-day period just before you withdrew an amount from that RRSP under the HBP.Footnote 1
2. Fair market value of the property held in the RRSP just after you made your withdrawal.
3. Line 1 minus line 2 (if negative, enter "0"). This is the amount of your contributions to the RRSP that you cannot deduct for any year.
Area 2 – If you contributed to your spouse's on common-law partner's RRSP during the 89-day period just before your spouse or common-law partner withdrew and amount from that RRSP, complete the following calculation.
4. Amounts you and your spouse or common-law partner contributed to the RRSP during the 89-day period just before your spouse or common-law partner withdrew an amount from that RRSP under the HBP.Footnote 2
5.Fair market value of the property held in the RRSP just after your spouse or common-law partner made their withdrawal.
6. Line 4 minus line 5 (if negative, enter "0"). This is the amount of the contributions to the RRSP that is not deductible for any year.Footnote 3
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