NOTE * - RRSP redemption for buying a home is not restricted to a First Time Home Buyer. It is also available to someone who has not owned a home within the past 5 years... Read More
CAUTION ** - If you live with someone that owns a home and are considered common law, married etc... you lose your ability to redeem RRSP's for a purchase of a home.
In 2010, Paul sold the home he had occupied as his principal place of residence for five years. He then moved into a rented apartment. In 2010, he met Jane and she moved in with him. Jane had been renting her own apartment, and had never owned a home.
Jane and Paul were married in August 2013. They wanted to withdraw funds from their RRSPs to participate in the HBP in September 2013. Since Paul owned and occupied his home during the period beginning January 1 of the fourth year before the year he wants to make the withdrawal, he is not considered a first-time home buyer, so he cannot participate in the HBP in 2013.
**However, Jane is considered a first-time home buyer, since she never owned a home, and she did not live with Paul during the period in which he owned and occupied his home as his principal place of residence
. She can participate in the HBP in 2013, providing all the other requirements are met.
If Jane does not participate in the HBP in either 2013 or 2014, Paul can participate in the HBP in 2015 as he will not have owned a home that he occupied as his principal place of residence since January 1, 2011. If they want to participate together in the HBP, they both have to wait until 2015 at which time they can withdraw funds under the HBP to buy or build a qualifying home.