The Home Buyers Plan (HBP) allows first-time homebuyers or persons who have not been homeowners for five years to withdraw funds from their RRSP to purchase a home, with no income tax payable on the amount withdrawn.

Maximum Withdrawal

A maximum of $20,000 may be withdrawn.

Qualifying Home

To qualify for the HBP, the home must be:

located in Canada;
purchased or built before October 1st of the calendar year in which the RRSP withdrawal is made;
intended to be your principal place of residence no later than one year after buying or building the home.

Repayments

The amounts withdrawn under a HBP must be repaid over a 15-year period, beginning in the second tax year following the year of the withdrawal. Each year you have to repay 1/15 of the total amount withdrawn and the repayments are not tax deductible.

Lifelong Learning Plan To top

The Lifelong Learning Plan (LLP) allows individuals to withdraw funds from their RRSP to finance full-time training or education programs, with no income tax payable on the amount withdrawn.

Maximum Withdrawal

The maximum withdrawal is $10,000 per year, up to a total of $20,000 over a four-year period.

Qualifying Educational Programs

Any educational program offered by a designated institution that lasts three consecutive months or more and requires students to spend 10 hours or more per week on courses or work in the program.

Repayments

The money has to be reinvested in the RRSP over a 10-year period, beginning the earlier of:

the fifth calendar year after your first withdrawal under the LLP
or
the second consecutive year in which you did not claim the education amount on your tax return for at least three months