Home Buyers' Plan - HBP

AAA

DEFINITION of 'Home Buyers' Plan - HBP'

A program in Canada that allows RRSP holders to withdraw up to $25,000 from their plan to buy or build a home for themselves. The major benefit of the Home Buyer's Plan (HBP) is that you are allowed to withdraw the funds tax free as long as they are used to buy/build your first home.

INVESTOPEDIA EXPLAINS 'Home Buyers' Plan - HBP'

You are given 15 years after the second year of withdrawal to pay the money back into your RRSP. The amount you have to pay back per year is 1/15th of the total amount you took out of your RRSP. Failure to pay back the funds may result in having to declare the funds you withdrew as part of your income. For more information on the HBP, contact the Canada Revenue Agency or visit their website.

RELATED TERMS
  1. Housing And Economic Recovery Act ...

    This act was created to address the subprime mortgage crisis ...
  2. Home Mortgage

    A loan given by a bank, mortgage company or other financial institution ...
  3. Canada Revenue Agency - CRA

    A federal agency that collects taxes and administers tax laws ...
  4. Deed

    A legal document that grants the bearer a right or privilege, ...
  5. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  6. Registered Retirement Savings Plan ...

    A legal trust registered with the Canada Revenue Agency and used ...
Related Articles
  1. Insurance Tips For Homeowners
    Insurance

    Insurance Tips For Homeowners

  2. Downsize Your Home To Downsize Expenses
    Retirement

    Downsize Your Home To Downsize Expenses

  3. To Rent Or Buy? The Financial Issues
    Home & Auto

    To Rent Or Buy? The Financial Issues

  4. Mortgages: How Much Can You Afford?
    Budgeting

    Mortgages: How Much Can You Afford?

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center