HBP: Home Buyers Plan and LLP: Lifelong Learning Plan

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This is another “bonus” for RRSP’s. I think I would definitely take advantage of it, if you have that much money saved up in your RRSP’s.

The Home Buyers Plan

The Canadian government recently up’d the amount from $20,000 withdrawal, to $25,000 this year (2009).
The main catch is that you have to be a first time homebuyer and that all the written agreements/ contracts are in place before you withdraw from your RRSP.
You don’t have to take it all out all at once, too. You can take some out first, and if you anticipate that you need more cash, you can take some out a few months down the road, as long as it’s all done within January of the following year of your home purchase.

Then you have to start repaying the money you withdrew. You would owe about 1/15 of that amount each year until you reach the 15th year.  The catch is that the money you contribute back into your RRSP is not tax deductible.

What do you think of the Home Buyers Plan?

Do you plan to utilize the Home Buyers Plan?

LLP: Life Long Learning Plan

home buyers plan

I’ve always been a proponent of lifelong learning.  The Canadian government seems like they are supportive too!

The LLP allows you to withdraw money from your RRSP for full time education that is an accredited post secondary educational institution.

You can take out a max of $10,000 per year, up to a max of $20,000 after four years of the first LLP withdrawl.

Then you have 10 years to pay the money back (like the HBP, you have to pay 1/10 of your RRSP back each year), but this starts after the 4th or 5th year from your first withdrawl for your RRSP’s.

Really detailed information on the LLP can be found here on the CRA website:


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Young is a writer and former owner of Young and Thrifty and the main "twitter' behind Young and Thrifty's twitter account. She lives in Vancouver, BC and enjoys long walks on the beach, spending time with her anxious dog, and finding good deals. If you like what you read, consider signing up for email updates.

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