Home Buyers' Plan
Definition
- A government program that gives first-time homebuyers the option to withdraw funds from their registered retirement savings plans (RRSPs) in order to use as a down payment for a mortgage. As of 2012, each borrower may withdraw up to $25,000, but all funds withdrawn using the Home Buyers' Plan (HBP) must be repaid to the RRSP within 15 years.
Website
http://www.cra-arc.gc.ca/hbp/
Relevant Locations
Canada
Notes
Government assistance for first-time homebuyers.
Synonyms
régime d'accession à la propriété
Acronyms
HBP
Related Terms and Acronyms
- Down Payment — Definition,
- The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Registered Retirement Savings Plan (RRSP) — Acronym, Canada, Very Important,
- A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
➥ Tax deferred investment contribution used to reduce income tax. - Tax-Free Savings Account (TFSA) — Acronym, Canada, Important,
- A savings account for Canadians where income earned is not taxed.
