Real Estate

First Time Homebuyer Plan

  • Last Updated:
  • Aug 23rd, 2021 7:38 am
[OP]
Newbie
Aug 30, 2010
69 posts
7 upvotes

First Time Homebuyer Plan

To qualify for the homebuyer's plan 35K RRSP withdrawal, the CRA states the below:
You are considered a first-time home buyer if, in the four-year period, you did not occupy a home that you or your current spouse or common-law partner owned.

https://www.canada.ca/en/revenue-agency ... conditions
However, if you own a rental property, would you still qualify for the HBP? (I have been living in a rental).
9 replies
Deal Addict
Mar 3, 2018
3017 posts
3383 upvotes
GTA
If you answer the questions on the T1036 E (20) form per your link you will see that you qualify.
Sr. Member
Jul 14, 2019
802 posts
719 upvotes
Ottawa
DaveTheDude wrote: If you answer the questions on the T1036 E (20) form per your link you will see that you qualify.
What is your advice for someone who has not invested in RRSP/TFSA and wanting to buy their first home?

I'm currently on a contract job role in IT and me and my spouse saving for at least make the downpayment amount(~65K) for a new house. What are the prospects of getting mortgage and be in good standing to get one?

Just asking for your opinion if you don't mind.
Newbie
Nov 21, 2008
94 posts
11 upvotes
ottawa
Wife lived with me in my home for 3 years but she never owned a home, now buying a house together, does she/we qualify as new home owners?
Deal Addict
Mar 3, 2018
3017 posts
3383 upvotes
GTA
Darshan7 wrote: What is your advice for someone who has not invested in RRSP/TFSA and wanting to buy their first home?

I'm currently on a contract job role in IT and me and my spouse saving for at least make the downpayment amount(~65K) for a new house. What are the prospects of getting mortgage and be in good standing to get one?

Just asking for your opinion if you don't mind.
$65K could be a 5% down payment on an average GTA house or 10% down on a condo with CMHC insurance.

Whether you would qualify for a mortgage for those will depend on the amount of your income, job stability, credit rating and amount borrowed. A mortgage broker can help you with that. But you being on contract work may present an issue.
Deal Addict
Mar 3, 2018
3017 posts
3383 upvotes
GTA
thegamez wrote: Wife lived with me in my home for 3 years but she never owned a home, now buying a house together, does she/we qualify as new home owners?
If one spouse currently owns a home then both spouses would not be considered first time home buyers for HBP RRSP withdrawal purposes.
Deal Addict
Jan 15, 2010
1508 posts
1835 upvotes
Toronto
Common law in Ontario is 3 year right?
Deal Fanatic
User avatar
Sep 14, 2006
9463 posts
2310 upvotes
DaveTheDude wrote: If one spouse currently owns a home then both spouses would not be considered first time home buyers for HBP RRSP withdrawal purposes.
Is it? I thought the spouse who hasn't ever owned a house would still qualify. It's not a combined assessment.
TEAM CANADA!!!!!!!!!!!
Deal Fanatic
User avatar
Sep 14, 2006
9463 posts
2310 upvotes
Darshan7 wrote: What is your advice for someone who has not invested in RRSP/TFSA and wanting to buy their first home?

I'm currently on a contract job role in IT and me and my spouse saving for at least make the downpayment amount(~65K) for a new house. What are the prospects of getting mortgage and be in good standing to get one?

Just asking for your opinion if you don't mind.
Start putting money into your RRSP up to the $35K max for each spouse provided that you have that contribution room. It needs to be in the RRSP at least 90 days before you can withdraw for the first time HBP.

If you're looking at putting $65K down, that money should be going into your RRSP first for the 90 days and then you can withdraw it around the time you close (I think it was up to 30 days after you close? I may be wrong about the timing). You will have a nice tax refund (hopefully) with your $65K contribution (for one or both of you) and also you won't be penalized for withdrawing to pay for your first home purchase. IMHO, it's a must do to maximize your benefits.
TEAM CANADA!!!!!!!!!!!

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