Originally Posted by Fire in the disco
My wife and I are looking at selling our current house and buying a new home. We did not take advantage of using rrsp for our down payment on our first home. Are we eligible to use rrsps penalty free for buying our second home?
Unfortunately, you are not eligible to use the Home Buyers Plan
as you currently own an owner occupied home that you and your wife live in. Below is a quick definition for whether you are a first time buyer or not.
Are you a first-time home buyer?
Unless you are a person with a disability or you are helping a related person with a disability buy or build a qualifying home, you have to be a first-time home buyer to withdraw funds from your RRSP(s) to buy or build a qualifying home.
You are considered a first-time home buyer if, in the four year period, you did not occupy a home that you or your current spouse or common-law partner owned.
NOTE: You can be considered a First Time Home Buyer again if you have not owned and lived in an Owner Occupied home in the last 4 years.