The Home Buyers’ Plan (HBP) is a provision of the Income Tax Act that would allow you and your spouse/common-law partner to each borrow funds from an RRSP to buy or build a qualifying home (ITA 146.01). An excluded withdrawal is an amount that you would have received out of your RRSP under the HBP, which is not included in computing your income for the year (ITA 146.01(1); excluded withdrawal).
If you have a spouse/common-law partner at the time of the HBP withdrawal, you are considered to be a first-time home buyer only if neither you nor your spouse/common-law partner owned a home that you both occupied as your principal place of residence at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before the date of the withdrawal (ITA 146.01(1), regular eligible amount (e)).
Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures, extended access to the HBP in order to help Canadians maintain home ownership after the breakdown of a marriage or common-law partnership.
As of 2020, you would be able to make a withdrawal under the HBP at a particular time if:
- you are living separate and apart from your spouse or common-law partner because of a breakdown of your marriage or common-law partnership;
- you have been living separate and apart from your spouse or common-law partner for a period of at least 90 days; and
- you began living separate and apart from your spouse or common-law partner in the calendar year that includes the particular time or any time in the four preceding calendar years.
However, you would not be a first-time home buyer.