RRSP For first time homebuyer

[redx2nv]

Looking to sell my current house that i have owned since april 2008, and looking to purchase another house aswell. I want use my RRSP's(have about $25k) that i want to use to put down on my next house purchase. By searching on the gov websites, i found the website below. Do they consider a first time house buyer someone who purchased a house and lived in for more than 4 years?

Somewhat confused on what's considered a first time homebuyer:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/frst-eng.html

[s2k_boi]

If you own your current house then you're NOT considered a first time home buyer.

[Kloubek]

I'm pretty sure they'd consider a first time buyer a first time buyer.

[Z_Fan]

Originally posted by Kloubek
I'm pretty sure they'd consider a first time buyer a first time buyer.

Well, that's what you'd think. But no. Not at all in fact.

You could have bought 5 houses (or more, any number really) and still be eligible for the HBP. You can even still OWN all of those properties - which you bought - and qualify for the HBP.

Catch is, you can't have lived in ANY of those properties [for basically 5 years] - which means you have to be RENTING the place that you actually live at as well as the properties you own. (Or they could just be empty I suppose, seems unlikely you'd do that though)

Example, if I bought 5 homes over my life time and retained them all. And I rent them all, and most recently lived in one 3 years ago - but now I rent - I could qualify for HBP in 2 years - at which point none of the properties I own were my primary residence within the required time period.

The OP however, he can not buy a home via the HBP for about 5 years. Assuming he RENTS out his current property (or sells it) and then RENTS a place of his own for that time period.

Now technically it says "owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal." So that's how they define the actual period. But anyone out of their primary residence for 5 years, no matter how many homes they may have, would be eligible.

No where does it say that you can not own homes...just that you can't have lived in them recently.

It's fucking stupid really.

[redx2nv]

So even better Z_fan, i do claim my house as my primary residence, BUT, i have renters every year and claim their rent on my taxes. Would i still be eligible?

[Z_Fan]

See the bolded line above.

If you claim it as your primary residence, which you do, you are not eligible. Doesn't matter if you rent it as well...

You can not use the HBP at this time.

[redx2nv]

Thank you z_fan!

[skandalouz_08]

It is a pretty dumb rule, but z_fan you are correct.

I believe you have to pay back your original HBP withdrawal as well before you can use the HBP again 5 years after "not living" in your property. Can anyone confirm this? I remember looking it up as I bought in 2006, rented it out in 2008 and haven't lived in it since then. Also paid off my HBP in 2008, which means I can buy in 2013 with my HBP again assuming I don't have another principal residence I own before then?