First home buyers plan

when you WD from RRSPs for HomeBuyers ... it would automatically be converted ... USD to CAD at the bank ... the Bank WILL NOT allow you to convert with a third party to get better rates.

Also ... how can you withdrawal and convert somewhere else without the hosting institution processing the WD? They cannot forward USD proceeds to another institution to convert and then throw it back to them to be an RRSP WD for HBP.

This is the law/regulations in the banking field pertaining to this issue.

If you don't believe me ... check out HBP from Revenue Canada.

I think you misunderstood the steps.

I plan to WD usd funds from my rrsp account into my US savings account within the same bank, then convert that usd to cad with Knightsbridge, knightsbridge will deposit the CAD back to my bank cad cheuqing account.
I am not telling a thirdparty to work within the rrsp account.

I am simply wd usd instead of cad, I am just wondering if they allow that.

Raela wrote: ↑ I am just wondering if they allow that.

Why are you wondering, just simply call them and ask. They should be able to assist you.

AV-Fishing wrote: ↑when you WD from RRSPs for HomeBuyers ... it would automatically be converted ... USD to CAD at the bank ... the Bank WILL NOT allow you to convert with a third party to get better rates.

Also ... how can you withdrawal and convert somewhere else without the hosting institution processing the WD? They cannot forward USD proceeds to another institution to convert and then throw it back to them to be an RRSP WD for HBP.

This is the law/regulations in the banking field pertaining to this issue.

If you don't believe me ... check out HBP from Revenue Canada.

Raela wrote: ↑ I think you misunderstood the steps.

I plan to WD usd funds from my rrsp account into my US savings account within the same bank, then convert that usd to cad with Knightsbridge, knightsbridge will deposit the CAD back to my bank cad cheuqing account.
I am not telling a thirdparty to work within the rrsp account.

I am simply wd usd instead of cad, I am just wondering if they allow that.

AV Fishing is right, you won't be able able to convert the funds with anyone else.

Your investments that are in US dollars will automatically be converted when you process them through the HBP withdrawal.

If you sell your US investments and have them sit in a US dollar RRSP savings account, they will still need to be converted within the institution to avoid you paying tax.

I don't think you can avoid your funds being converted by the bank.

It's also$25k CAD. The bank will enter "withdraw $25k in CAD" and it will convert the amount needed from USD.

Raela wrote: ↑ Hi all,

wanted to ask about the HBP, I know that you can draw 25000 cad but does it have to be in cad?
Can I withdraw 25000 cad equivilant of USD?

The reason Im asking is because the funds in my RRSP is in US investments, and if I were to convert it with the bank internally, there's a quite big of a spread. But if I can withdrawl the USD, then I can use 3rd party exchanges like Knightsbridge for a lower spread.

Thanks in advance

just get a quote from 3rd party and ask your bank to match it. The branch will call the currency exchange department and see if it is possible.

Raela wrote: ↑ I think you misunderstood the steps.

I plan to WD usd funds from my rrsp account into my US savings account within the same bank, then convert that usd to cad with Knightsbridge, knightsbridge will deposit the CAD back to my bank cad cheuqing account.
I am not telling a thirdparty to work within the rrsp account.

I am simply wd usd instead of cad, I am just wondering if they allow that.

You cannot WD usd funds from your Canadian rrsp account into your US savings account.

RRSP is ONLY available in Canada.

You can HOLD foreign investments inside your RRSP but when you withdrawal it is AUTOMATICALLY converted to Canadian funds by the bank and the proceeds are to be processed into your CAD savings/chequing account

This is the RULE with RRSPs.

You can go into the branch and ask ANY personal banker and they will tell you exactly what I just repeated.

You can even ask a Financial Advisor (those that have the FA licensing) and they will tell you exactly what I just said.

I used to be a personal banker at a bank handling portfolios for customers with a minimum of $10 Million assets ... so I am quite verse with these rules.

so i guess it is different from tfsa, because I was able to withdraw usd fund from my tfsa into my US savings account

You can withdraw USD from your RSP/RIF/TFSA account, as long as the financial institution has this option.
You will get the USD and on statement/receipt will be the conversion rate used, so you know how much you took out in CDN.
Having said that, I've never done personally a HBP withdrawal in USD, but I don't see an issue with that.

Funds can only go in and out of RRSP accounts in CAD.