Home Buyers’ Plan (HBP)

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Evaluation

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define the terms associated with the Home Buyers’ Plan.
    • First-time home buyer1
    • Qualifying home2
  • Explain the qualifying conditions to participate in the First Time Home Buyer Incentive program.  
  • Explain the qualifying conditions to withdraw cash from a Registered Retirement Savings Plan under the Home Buyers’ Plan.3
  • Explain how the use of a Home Buyers’ Plan withdrawal may be impacted by a joint purchase of a property between spouses. 
    • When both spouses qualify as first-time home buyers
    • When only one spouse qualifies as a first-time home buyer 
  • Explain that the principal residence and previous home ownership requirements are waived when a withdrawal is made from a Registered Retirement Savings Plan under the Home Buyers’ Plan to purchase a qualifying home for a related disabled person. 
  • Explain how a Registered Retirement Savings Plan deduction may be affected if a withdrawal under the Home Buyers’ Plan is made within 90 days of a Registered Retirement Savings Plan contribution.  
  • Explain the purposes for which a withdrawal from the Home Buyers’ Plan may be used. 
  • Explain the repayment schedule required for withdrawals made under the Home Buyers’ Plan.4
  • Calculate the annual repayments required under the Home Buyers’ Plan.
    • At the beginning of the repayment term
    • At any point throughout the repayment term 
  • Identify the current amount of repayment required under the Home Buyers’ Plan. 
  • Explain how a Home Buyers’ Plan participant designates on their tax return that a contribution to a Registered Retirement Savings Plan is a Home Buyers’ Plan repayment.5
  • Explain the impact of a repayment made to the Home Buyers’ Plan.6
    • Tax impact
    • Home Buyers’ Plan balance 
  • Explain the impact of failing to make repayment to the Home Buyers’ Plan.7
    • Tax impact
    • Home Buyers’ Plan balance 
  • Explain the situations in which the repayment period for the Home Buyers’ Plan may be shortened. 
  • Explain the options available to the Home Buyers’ Plan participant (or their legal representative in the case of death) in situations when their repayment period is shortened.8
    • Home Buyers’ Plan participant’s death
    • Home Buyers’ Plan participant becomes a non-resident
    • Home Buyers’ Plan participant reaches age 71 
  • Explain the circumstances in which the Home Buyers’ Plan participant may cancel their participation in the program.9 
  • Identify the process by which the Home Buyers’ Plan participant may cancel their participation in the program.10
  • Determine how each of these factors may impact the suitability of withdrawing funds under the Home Buyers’ Plan to purchase a property:
    • Impact on ability to acquire property 
    • Impact on cash flow
    • Loss of asset growth within Registered Retirement Savings Plan 
    • Expected interest cost of alternative borrowing options  
  • Evaluate how each of the factors may impact the suitability of withdrawing funds under the Home Buyers’ Plan to purchase a property.

REFERENCES

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Evaluation

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define the terms associated with the Home Buyers’ Plan.
    • First-time home buyer1
    • Qualifying home2 
  • Explain the qualifying conditions to participate in the First Time Home Buyer Incentive program.  
  • Explain the qualifying conditions to withdraw cash from a Registered Retirement Savings Plan under the Home Buyers’ Plan.3 
  • Explain how the use of a Home Buyers’ Plan withdrawal may be impacted by a joint purchase of a property between spouses. 
    • When both spouses qualify as first-time home buyers
    • When only one spouse qualifies as a first-time home buyer 
  • Explain that the principal residence and previous home ownership requirements are waived when a withdrawal is made from a Registered Retirement Savings Plan under the Home Buyers’ Plan to purchase a qualifying home for a related disabled person. 
  • Explain how a Registered Retirement Savings Plan deduction may be affected if a withdrawal under the Home Buyers’ Plan is made within 90 days of a Registered Retirement Savings Plan contribution.  
  • Explain the purposes for which a withdrawal from the Home Buyers’ Plan may be used. 
  • Explain the repayment schedule required for withdrawals made under the Home Buyers’ Plan.4
  • Calculate the annual repayments required under the Home Buyers’ Plan.
    • At the beginning of the repayment term
    • At any point throughout the repayment term 
  • Identify the current amount of repayment required under the Home Buyers’ Plan. 
  • Explain how a Home Buyers’ Plan participant designates on their tax return that a contribution to a Registered Retirement Savings Plan is a Home Buyers’ Plan repayment.5 
  • Explain the impact of a repayment made to the Home Buyers’ Plan.6
    • Tax impact
    • Home Buyers’ Plan balance 
  • Explain the impact of failing to make repayment to the Home Buyers’ Plan.7
    • Tax impact
    • Home Buyers’ Plan balance 
  • Explain the situations in which the repayment period for the Home Buyers’ Plan may be shortened. 
  • Explain the options available to the Home Buyers’ Plan participant (or their legal representative in the case of death) in situations when their repayment period is shortened.8
    • Home Buyers’ Plan participant’s death
    • Home Buyers’ Plan participant becomes a non-resident
    • Home Buyers’ Plan participant reaches age 71 
  • Explain the circumstances in which the Home Buyers’ Plan participant may cancel their participation in the program.9
  • Identify the process by which the Home Buyers’ Plan participant may cancel their participation in the program.10 
  • Determine how each of these factors may impact the suitability of withdrawing funds under the Home Buyers’ Plan to purchase a property:
    • Impact on ability to acquire property 
    • Impact on cash flow
    • Loss of asset growth within Registered Retirement Savings Plan 
    • Expected interest cost of alternative borrowing options  
  • Evaluate how each of the factors may impact the suitability of withdrawing funds under the Home Buyers’ Plan to purchase a property.

REFERENCES
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