HBP - Closing Jan 11... can I withdraw now?

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Dec 17th, 2020 10:12 am

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Dec 16th, 2020 9:47 pm

i6s1 [OP]: Deal Expert; Feb 9, 2003; 19149 posts; 3372 upvotes; 9347934 downvotes

Dec 16th, 2020 9:47 pm

HBP - Closing Jan 11... can I withdraw now?

https://questrade-support.secure.force. ... ers%20Plan

Questrade says "same calendar year." Same calendar year as what? Closing? I want to withdraw now, in 2020, for a closing in 2021, which is next calendar year. Is that ok?

I can't find that rule anywhere on the CRA website.

With a Jan 11 closing, and Questrade being very slow to respond to requests, I don't want to wait until Jan 4 (First business day of 2021) to make the withdrawal request.

My last withdrawal request was from my TFSA on Nov 24, and the money wasn't in my bank account until Dec 1. With a HBP plan withdraw being more complex, I'm worried it will take even longer.

Options?

I might be able to swing it without the RRSP money if I withdraw from line of credit and borrow from relatives, so I won't lose the house. But I don't want to do that if I can avoid it by withdrawing now.

TIA.

2 replies

Dec 17th, 2020 9:26 am

ssj4_ootaku1: Member; May 12, 2003; 371 posts; 245 upvotes; GTA

Dec 17th, 2020 9:26 am

If I was you, I'd personally try to withdraw in 2021. That way I get an extra year to start paying back.

I'm not 100% sure on the withdrawal rules, but same calendar year makes sense to me.

Also, did you know that you can withdraw the funds upto 30 days AFTER CLOSING?

So you can get funds from your LoC and then just wait for the HBP funds to show up in your account, and pay LoC back and it would be all in the same calendar year.

Dec 17th, 2020 10:12 am

rob444: Deal Addict; Jan 2, 2012; 4234 posts; 2242 upvotes; Toronto

Dec 17th, 2020 10:12 am

i6s1 wrote: ↑ https://questrade-support.secure.force. ... ers%20Plan

Questrade says "same calendar year." Same calendar year as what? Closing? I want to withdraw now, in 2020, for a closing in 2021, which is next calendar year. Is that ok?

I can't find that rule anywhere on the CRA website.

With a Jan 11 closing, and Questrade being very slow to respond to requests, I don't want to wait until Jan 4 (First business day of 2021) to make the withdrawal request.

My last withdrawal request was from my TFSA on Nov 24, and the money wasn't in my bank account until Dec 1. With a HBP plan withdraw being more complex, I'm worried it will take even longer.

Options?

I might be able to swing it without the RRSP money if I withdraw from line of credit and borrow from relatives, so I won't lose the house. But I don't want to do that if I can avoid it by withdrawing now.

TIA.

That's not referring to same calendar year of closing, its referring to calendar year if you make multiple withdraws to get to the $35K. All the withdrawls need to happen in same calendar year. So you are perfectly fine to take out now, as long as it's the entire amount and you don't do a 2nd withdraw in 2021 (and even then CRA doesn't seem to care as they indicate for January they will just back-date all withdraws to the first year a withdraw was made).

https://www.canada.ca/en/revenue-agency ... -plan.html
https://www.canada.ca/en/revenue-agency ... -plan.html
- You can withdraw a single amount or make a series of withdrawals in the same calendar year. However, you cannot withdraw more than $35,000.
- You have to receive or be considered to have received, all withdrawals in the same calendar year.

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