Personal Finance

Can I withdraw from RSP for HBP downpayment?

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  • Jan 23rd, 2015 1:40 am
Sr. Member
Dec 15, 2008
652 posts
58 upvotes
Vancouver, BC

Can I withdraw from RSP for HBP downpayment?

About 8 years ago my dumb lawyer put me in the land title of my mom's place when all I really need to be was co-signer for a mortgage. This is how I lost my privilege to save on purchase tax as 1st time home buyer for my next house but that was corrected 6 years ago where my name was removed from land title. After 5 years of not having your name in a land title I understand you can use HBP privilege again and withdraw from RSP toward property downpayment.

I'm planning on purchasing a house with my gf but in a scenario where only her name would be on the land title can I still make use of HBP privilege even if I'm only co-signer in the mortgage? I assume if I put my name on the land title purchase tax.
14 replies
Deal Addict
Jan 15, 2009
1081 posts
456 upvotes
Just north.
So...if both of you are paying for the house, but only your GF is on the land title...does that mean if she dumps your ***** , she gets to keep the place to herself and there isn't anything you can do about it? I'd worry more about that than HBP.
Deal Guru
Apr 11, 2006
12392 posts
6573 upvotes
Vaughan
It's for homebuyers. If your name is not on the title, you're not the homebuyer. The mortgage has nothing to do with the actual house transaction, that's a separate loan.
Deal Guru
Dec 11, 2008
13068 posts
3758 upvotes
In order to draw from HBP you have to:
1) No be a home owner for the past 5 years
2) Owe nothing to the HBP

So you should no problem using the HBP
Jr. Member
Feb 7, 2011
156 posts
18 upvotes
Ottawa
I believe so, if you are considered common law on your last tax return then I think as long as one of you is on the title and mortgage your fine. I did this with my gf and I, we weren't able to put her name on the mortgage because we wouldn't be approved. She's self employed and the banks did not approve her salary because she hadn't been working for a min. of 2 years. However, we still went through her name for the HBP and are making re payments now.
Deal Addict
Aug 30, 2011
3537 posts
1279 upvotes
Ottawa
kenchau wrote: It's for homebuyers. If your name is not on the title, you're not the homebuyer. The mortgage has nothing to do with the actual house transaction, that's a separate loan.
I think kenchau is correct. The HBP conditions indicated on the CRA website clearly state that YOU must have entered into a written agreement to buy the house. http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html
You have to enter into a written agreement to buy or build a qualifying home.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2992 upvotes
exhaust wrote: About 8 years ago my dumb lawyer put me in the land title of my mom's place when all I really need to be was co-signer for a mortgage. This is how I lost my privilege to save on purchase tax as 1st time home buyer for my next house but that was corrected 6 years ago where my name was removed from land title. After 5 years of not having your name in a land title I understand you can use HBP privilege again and withdraw from RSP toward property downpayment.

I'm planning on purchasing a house with my gf but in a scenario where only her name would be on the land title can I still make use of HBP privilege even if I'm only co-signer in the mortgage? I assume if I put my name on the land title purchase tax.
Your "dumb" lawyer couldn't have done this without your signature. Who's the "dumb" one?

It's amusing to me how people who are always trying to game the system end up getting themselves into bigger trouble than it's worth. You worry about using funds from HBP more than having your name on the title? That's a little messed up. Odds are you'll end up regretting the latter more than any benefit to be had from using HBP funds.
Deal Addict
Sep 12, 2012
1092 posts
1141 upvotes
Toronto
Your name has to be on the title to qualify for HBP. And as guyver0 stated, if you guys are not legally common law, just putting your gf's name on the title can mean you get nothing if you two separate.
Jr. Member
Oct 17, 2013
186 posts
137 upvotes
Ontario
Depending on which province you live in, common law relationships are viewed differently by law from province to province, and you need to be very careful in how you deal with property ownership. I live in Ontario with my common law partner (17 years), and everything we own that we want to have equal ownership in, we sign together. Everything I want to own by myself, I only have my name on it, and same goes for him. I would never have such a significant purchase, like a house, only have his name on it if I am contributing to the costs as well, no matter what the law in my province states about common law relationships.
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
Your name needs to be on title.
exhaust wrote: About 8 years ago my dumb lawyer put me in the land title of my mom's place when all I really need to be was co-signer for a mortgage. This is how I lost my privilege to save on purchase tax as 1st time home buyer for my next house but that was corrected 6 years ago where my name was removed from land title. After 5 years of not having your name in a land title I understand you can use HBP privilege again and withdraw from RSP toward property downpayment.

I'm planning on purchasing a house with my gf but in a scenario where only her name would be on the land title can I still make use of HBP privilege even if I'm only co-signer in the mortgage? I assume if I put my name on the land title purchase tax.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
exhaust wrote: About 8 years ago my dumb lawyer put me in the land title of my mom's place when all I really need to be was co-signer for a mortgage. This is how I lost my privilege to save on purchase tax as 1st time home buyer for my next house but that was corrected 6 years ago where my name was removed from land title. After 5 years of not having your name in a land title I understand you can use HBP privilege again and withdraw from RSP toward property downpayment.

I'm planning on purchasing a house with my gf but in a scenario where only her name would be on the land title can I still make use of HBP privilege even if I'm only co-signer in the mortgage? I assume if I put my name on the land title purchase tax.
If you co-signed you had to be on title. The lawyer was right. Only if you are a guarantor can you name be left off. http://www.bankrate.com/can/news/mortga ... odtype=mtg
Doug Boswell
i
Sr. Member
Dec 15, 2008
652 posts
58 upvotes
Vancouver, BC
dougboswell wrote: If you co-signed you had to be on title. The lawyer was right. Only if you are a guarantor can you name be left off. http://www.bankrate.com/can/news/mortga ... odtype=mtg
Thanks for the link that clearly differentiates Guarantor vs Co-signer. I was a co-signer by mistake as described in my previous situation. During that time the mortgage shows up in my Equifax records despite not being in the property title (because I'm co-owner of mortgage I guess).
What if I'm simply a Guarantor, would I have that mortgage under my name in Equifax?
Penalty Box
User avatar
Aug 19, 2008
1925 posts
503 upvotes
exhaust wrote: Thanks for the link that clearly differentiates Guarantor vs Co-signer. I was a co-signer by mistake as described in my previous situation. During that time the mortgage shows up in my Equifax records despite not being in the property title (because I'm co-owner of mortgage I guess).
What if I'm simply a Guarantor, would I have that mortgage under my name in Equifax?
Why would you ever want to take on responsibility for a loan and have ZERO claim to the property?
Sr. Member
Dec 15, 2008
652 posts
58 upvotes
Vancouver, BC
Donnie740 wrote: Why would you ever want to take on responsibility for a loan and have ZERO claim to the property?
My sister who I'm close with who is single may need a bit of a boost at the bank to get bank's confidence for mortgage renewal approval.

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