withdraw RRSP for the purpose of HBP during interim closing

[瓷娃娃]

Sorry cant type chinese during work, We bought a condo and the interim closing is the end of January. Our builder claims that we could make some payment to reduce the occupant fee required during interim closing. we plan to withdraw RRSP as part of the payment.

does anyone know that if i could make HBP withdrawal during interim closing?
The final closing date may be a month after interim closing date.

 

[stevenlee216]

Sorry cant type chinese during work, We bought a condo and the interim closing is the end of January. Our builder claims that we could make some payment to reduce the occupant fee required during interim closing. we plan to withdraw RRSP as part of the payment.

does anyone know that if i could make HBP withdrawal during interim closing?
The final closing date may be a month after interim closing date.

Yes, you may withdraw up to $20,000 from your RRSP pool(your spouse can withdraw 20000 as well), to purchase a principal residence. The conditions are: You and your spouse have not owned and lived in any home as a principal residence for four(4)years. (ie: you withdraw RRSP Jan 2011, then you and your spouse can not own a home for year 2007,2008,2009,2010) Besides, if you do make the withdrawal, you have to may the 1st repayment within 60days of the end of 2nd following year after withdrawal year(ie: withdrawal in 2011, latest date for repayment is Mar 1st, 2014), for a period of up to 15 years. If you failed to repay HBP for each year, the amount of HBP will be treated as RRSP income for given year.

As well, when you make the withdrawal, you have to file a T1036 from your RRSP issuer, since this keeps your HBP withdrawal tax-free.

Hope it helps, good luck!