Solution: key points of the RRSP home buyers plan;

• You can withdraw $20,000 from your RRSP to purchase or build a house. No income tax is taken from these funds, as long as they are repaid to an RRSP within the government repayment schedule.
• You (or your spouse) have to have not owned a home that you occupied as your principal residence in any of the past five years.
• Once you enter into a binding agreement to buy a home, you can withdraw from your RRSPs
• You must acquire the home before October of the year following the year of withdrawal
• After you enter into the Agreement to buy a house - you have to fill out a Form T1036 -(Revenue Canada office) and give it to your RRSP issuer - to be approved.
• If your spouse qualifies -you can each withdraw up to $20,000 for a total of $40,000
• You may withdraw money from yours RRSP tax free if that money was deposited at least 90 days prior to withdrawal
  
• The house you buy has to be in Canada and has to be acquired not more than 30 days before receiving the withdrawal under the RRSP Home Buyers Plan.
  
• The home you buy has to be occupied as your principal residence within one year after buying or building it.
  
• The plan works for new or resale homes (even condos or semis)
  
• You have to repay the money you withdraw over a period of not more than 15 years -not less than 1/15th per year. If you don't pay 1/15th per year, you bring into income the amount that is less than 1/15th that year. For example, if you withdraw $15,000 to buy a home, your annual repayment is $1000. If you repay $700 the next year -then the difference, namely $300 gets included in your income.
  
• Your RRSP repayments must be made on or before Dec 31 of each year -the repayment period begins the second year following the year in which the withdrawal is made.
• WARNING: CONSULT A FINANCIAL PLANNER TO OBTAIN ADVICE AS TO WHETHER WITHDRAWING MONEY FROM YOUR RRSP TO BUY A HOME FITS WITHIN YOUR OVERALL FINANCIAL PLAN!

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