Question about First time Home Buyers Program?

[sudenm]

How to take the money out from the RRSP in the HBP?
all of my money is invested in some mutual funds do I need to sell all the funds and keep the money as cash to take the loan from RRSP??

I have accounts with different banks so how this loan program work ?

I have very little knowledge in this please advise???

Thanks in advance !

[15-20_God]

yes, you need to sell the funds to free up the cash. there is a home buyers withdrawal form, fill that out and send it to the bank. the bank would have a copy or you can google it, should be on the ccra site.

[chococrazy]

You won't have a problem withdrawing different amounts from your various RSPs. Just make sure that you're only withdrawing a maximum of $20,000.

The only thing is that some financial institutions might charge a fee for this withdrawal... so this might influence where you want to withdraw the money, if you have a choice.

[Symcor]

Question,

I bought a house 4 years ago and it was my first house. I did not apply the HBP at that time because I don't think is necessary. Now, I want to do some renovation of my house and would like to move out some cash from my RRSP acount to pay the job. Am I still able to apply the HBP now or not?

I am thinking technically I am still a first time home buyer and only apply the HBP 4 years later. But I may be absolutely wrong, anyone can help?

[WildEmu]

Question,

I bought a house 4 years ago and it was my first house. I did not apply the HBP at that time because I don't think is necessary. Now, I want to do some renovation of my house and would like to move out some cash from my RRSP acount to pay the job. Am I still able to apply the HBP now or not?

I am thinking technically I am still a first time home buyer and only apply the HBP 4 years later. But I may be absolutely wrong, anyone can help?

You won't qualify for a couple of reasons. The easiest to explain is that you already owned the house for more than 30 days before the withdrawal. You have to meet very specific requirements in order to withdraw money from an RRSP using the HBP.

See this for more information:
http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html#P105_11069

[krash322]

Basically, you have to fill out a T1036 form in order for the bank to withdraw money from your RRSP without any withholding tax. Otherwise, any withdrawals will incur withholding tax of 30%.

As someone has already pointed out, you are allowed a total of $20k for a one time withdraw Also, you cannot own a qualifying home within 30 days before your withdrawal.

It sounds like in your case that you cannot take advantage of a HBP withdrawal, based on the minimal info you have provided.