RRSP First-time Buyer Exceptions

Question:  I heard that I'm not considered a first-time buyer for the RRSP Home Buyers' Plan (HBP) if me or my spouse have owned a house in the past five years. Are there any exceptions to this rule?




Answer:  Yes. You can still qualify as a first-time buyer under the Home Buyer's Plan if...

from January 1 of the fourth previous year (i.e., 2006) until 31 days before withdrawal, you:

• Did not own a house that you occupied as your primary residence; and,
•  Did not make a spouse's (or common-law partner's) owner-occupied home your principal residence.

As this suggests, you can rent your primary residence while owning one or more rental properties, and still be considered a first-time buyer under the RRSP Home Buyers' Plan.
Even if you or your spouse owned a principal residence in the last 4-5 years, you can still withdraw funds under the HBP if you:

• Have a disability and are buying a home that is more accessible or better suited to your needs
• Buy a home for a close family member with a disability, and that home is more accessible or better suited to the needs of that person
• Give the funds to a close family member so they can buy a home that is more accessible or better suited to their needs.

Here's the definition of a close family member and other relevant details: HBP Link.