Resident | Home Buyers Plan Non

While the HBP is a powerful tool for Canadian residents, the rules change significantly if you become a of Canada. 1. Eligibility at the Time of Withdrawal

The primary risk for non-residents is the . Canada's tax system is designed to ensure that the HBP—which is a tax-deferred loan from your future self—is used to support the Canadian housing market. When you sever ties with the country, the CRA typically wants that tax-deferred money either back in the RRSP or taxed as immediate income. home buyers plan non resident

Failure to repay the balance within this timeframe results in the outstanding amount being added to your income for the year you left Canada, which could trigger a significant tax bill. 3. Ongoing Repayment Rules for Non-Residents While the HBP is a powerful tool for

Even if you are a non-resident now, you might plan to return to Canada. To use the HBP upon your return, you must qualify as a "first-time buyer." This means that in the four-year period before your withdrawal, you did not occupy a home that you or your current spouse/common-law partner owned. Your time spent abroad as a non-resident counts toward this four-year window. Summary of Risks Canada's tax system is designed to ensure that

You are still expected to repay 1/15th of the total amount each year.

If you were a resident when you withdrew the funds but move abroad before the home is purchased, you may face immediate tax consequences. Generally, if you cease to be a Canadian resident before the purchase of a qualifying home is complete, you must repay the full balance of your HBP withdrawal to your RRSP by the of: