knowledge topics
Home Buyers' Plan (HBP)
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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.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.4
- Explain the impact of a repayment made to the Home Buyers’ Plan.4
- Tax impact
- Home Buyers’ Plan balance
- Explain the impact of failing to make repayment to the Home Buyers’ Plan.4
- 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.5
- 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.6
- Identify the process by which the Home Buyers’ Plan participant may cancel their participation in the program.7
- Explain how each of the factors may impact the suitability of withdrawing funds under the Home Buyers’ Plan to purchase a property, such as:
- 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
- Explain the qualifying conditions to participate in the First Time Home Buyer Incentive program
- Evaluate how each of the factors may impact the suitability of withdrawing funds under the Home Buyers’ Plan to purchase a property.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally

REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/menu-eng.html#first-timehomebuyer
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/menu-eng.html#qualifyinghome
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/menu-eng.html#HBP-eligibilityconditions
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/rpymnts/menu-eng.html#mkng_rpmts
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/rpymnts/menu-eng.html#spcl_sttns
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cncllng/menu-eng.html#cn_cncl
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cncllng/menu-eng.html#Hw_cncl