“Four-Year” Rule (RRSP Home Buyers’ Plan)

Canada Revenue Agency (CRA) uses a rolling four-year window that allows you to “reset” your eligibility. To withdraw funds from your RRSP tax-free, you must meet the following criteria:

• The Four-Year Window: You are considered a first-time buyer if, during the four-year period starting on January 1st of the fourth year before your withdrawal, you did not occupy a home owned by you or your current spouse/common-law partner.

• The “Reset” Advantage: This means you can qualify as a first-time buyer more than once in your lifetime. If you sold your previous home five years ago and have been renting since, you likely qualify to use the Home Buyers Plan again.

The First Home Savings Account (FHSA)

To open an account and make tax-free withdrawals for a home purchase, you must meet the following residency criteria:

• The Four-Year Rule: You (and your spouse or common-law partner) must not have lived in a qualifying home as your principal residence that you owned or jointly owned in the current calendar year or any of the previous four calendar years.

• Principal Residence: This rule applies specifically to homes you lived in. Owning a rental property that you never occupied typically does not disqualify you.

Note: The FHSA is designed primarily for those who do not currently have a stake in the real estate market.

The Land Transfer Tax Rebates (Provincial)

If you are buying a home in Ontario or British Columbia, you may be eligible for a rebate to help offset provincial Land Transfer Taxes. To qualify:

• Global Ownership Rule and No “Reset” Period: You must have never owned a home or held an interest in one anywhere in the world at any time (owned or inherited).

• Residency & Age: You must typically be at least 18 years old and a Canadian citizen or permanent resident

Note: Your partner’s history can impact your eligibility i.e. if your spouse owned a home while they were your spouse, you are both disqualified from the rebate whether or not you are on the title.