The Home Buyers' Plan (HBP) is a

program under which you can, generally, withdraw

up to $20,000 from your

registered retirement savings plan

(RRSPs) to buy or build a qualifying home.

Withdrawals that meet all applicable HBP conditions

do not have to be included in your

income, and your RRSP issuer will not withhold

tax on these amounts. However, before you can

withdraw funds you must have entered into a

written agreement to buy or build a qualifying

home which you must occupy no later than one

year after buying or building the home.

If you buy the qualifying home together with

your spouse or other individuals, each of you

can withdraw up to $20,000. You cannot withdraw

an amount from your RRSP under the HBP

if you or your spouse owned the home more

than 30 days before the date of your withdrawal.

• Up to $20,000 per person could be

withdrawn tax-free from RRSPs to buy or

build a principal residence. Couples -

including common-law - will be able to

withdraw up to $40,000.

• You have to meet the first-time buyer's condition.

You are not considered a

first-time home buyer if you or your spouse

owned a home that you

occupied as your principal place of residence

in the past 5 years. To determine past

5 years, the 4 years

preceding the year you make your

withdrawal plus the period in the year you

make your withdrawal ending 31 days

before your withdrawal is the rule adopted.

• Home buyers withdrawing funds do

not have to pay income tax on the amount

withdrawn, as long as the funds are repaid

into an RRSP in the future.

• The 15-year repayment period will begin in

the second calendar year following the calendar

year in which the withdrawal is made. In

addition, a qualifying home must generally

be acquired before October 1 of the calendar

year following the year of withdrawal. For

example, those making withdrawals under

the plan in 2000 will have until October 1,

2001 to acquire a qualifying home and their

first annual repayment will

be due by the end of 2002 or

the first two months of 2003.

• A special rule denies a tax

deduction for contributions

to an RRSP that are withdrawn

within 90 days of the

RRSP deposit being made.

Consequently, to get the

normal tax break for a contribution

and to use those

funds under the plan, the

money must be in your

RRSP for at least 90 days

before a withdrawal is made.

Existing homeowners can use the HBP to purchase

a more accessible home or a home for a

disabled dependent relative where the individual

withdrawing the funds:

• qualifies for the disability tax credit (DTC)

and is buying a home that is more accessible

for the individual or is better suited for

the care of the individual;

• is related to a disabled individual who qualifies

for the DTC and is

buying a home for the benefit of the disabled

individual that is more accessible for,

or better suited for, the care of the disabled

individual, or;

• is related to a disabled individual who qualifies

for the DTC and is withdrawing an

amount for the disabled individual to buy a

home that is more accessible for, or better

suited for, the care of the disabled individual.