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Who is a First-Time Home Buyer?

First-Time Home Buyers Incentives

In our last Blog there was an article about the new First-Time Home Buyers Incentives introduced by the Federal Government. One of our readers mentioned about who is a First-Time Home Buyer?

Are you a first-time home buyer?
Unless you are a person with a disability or you are helping a related person with a disability buy or build a qualifying home, you have to be a first-time home buyer to withdraw funds from your RRSP(s) to buy or build a qualifying home.

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.

Note

Even if you or your spouse or common-law partner has previously owned a home, you may still be considered a first-time home buyer. If you have a spouse or common-law partner, it is possible that only one of you is a first-time home buyer.

The four-year period
Begins on January 1st of the fourth year before the year you withdraw funds. Ends 31 days before the date you withdraw the funds.

For example, if you withdraw funds on March 31, 2019, the four-year period begins on January 1, 2015 and ends on February 28, 2019.

Can you participate in the HBP later?
If you are not considered a first-time buyer now, you may be considered a first-time home buyer later, once the four-year period has passed.

For example, if in 2013 you sold the home you lived in before, you may be able to participate in 2018 or if you sold the home in 2014, you may be able to participate in 2019.