How to make a Home Buyers Plan withdrawal?

Buy a House with your rrsp

To make an eligible withdrawal under the HBP, you have to use Form T1036, Home Buyers' Plan (HBP) - Request to Withdraw Funds from an RRSP.

You have to complete Form T1036 for each withdrawal you make. You can download and print a copy of the form. You can also order a printed copy of the form by calling 1-800-959-2221 .

After completing Area 1 of Form T1036, give it to your RRSP issuer who will fully complete Area 2. Your RRSP issuer will not withhold tax from the funds you withdraw if you meet the applicable HBP conditions. Your RRSP issuer will send you a T4RSP slip, Statement of RRSP Income, showing the amount you withdrew under the HBP in box 27. You have to attach this slip to your income tax return.

Your RRSP deduction may be affected by HBP participation

If you participate in the HBP, certain rules limit your RRSP deduction for contributions you made to your RRSP during the 89-day period just before your withdrawal under the HBP. Under these rules, you may not be able to deduct all or part of the contributions made during this period for any year.

You cannot deduct the amount by which the total of your contributions to an RRSP during the 89-day period just before your withdrawal from that 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 just before that individual made the withdrawal from the same RRSP under the HBP.

In other words: The contributions have to be in the RRSP for at least 90 days before you can deduct it from your income on your tax return.

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To make an eligible withdrawal under the HBP, you have to use Form T1036, Home Buyers' Plan (HBP) - Request to Withdraw Funds from an RRSP...

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Source: CRA. -This document is not an official version of materials. This page was not produced with endorsement and is in no way affiliated with the CRA.