On January 1, 2020, a variety of federal tax changes came into effect, which will have an impact on families across Canada.
Canada’s Home Buyers’ Plan (HBP) helps first-time home buyers save for a down payment by allowing them to withdraw up to $35,000 from a registered retirement savings plan (RRSP) to buy or build a qualifying home for themselves or for a related person living with a disability, without having to pay tax on this withdrawal.
Starting this year, separated and divorced Canadians who break up their marriage or common-law relationship in the calendar year in which the withdrawal is made or any time in the four preceding calendar years can access the HBP, even for those who don’t meet the first-time home buyer requirement.
- List of Tax Changes Taking Effect on January 1, 2020, Department of Finance, Government of Canada
- Home Buyer’s Plan (HBP), Canada Revenue Agency, Government of Canada