HBP - what do i need for the banks to release my money

[zaindo]

Hello all,

I have multiple RSP accounts in 3 banks totalling 25k that i plan to use for down payment under the HBP plan. The money has been there for some time and i do qualify as a first time home buyer.

What would i require from my end to get this money released from the banks ?

What documentation would banks want to see before they release these funds over to me without any penalties ?

Is it a problem if i am withdrawing RRSP funds from multiple banks (totaling to under 25k)?

Any and all help is appreciated.

Thanks

 

[cdr108]

there is a standard form that you will have to fill out ... contact your respective banks and ask them about it.

also, you will need your Purchase and Sale Agreement.

IIRC, i think it could take up to 2-3 months for the banks to get CRA approval before the banks will release your RSP accounts without with-holding funds otherwise.

 

[zaindo]

there is a standard form that you will have to fill out ... contact your respective banks and ask them about it.

also, you will need your Purchase and Sale Agreement.

IIRC, i think it could take up to 2-3 months for the banks to get CRA approval before the banks will release your RSP accounts without with-holding funds otherwise.

thats good information, Thank you CDR. 2-3 months to get the money off from RSP, i thought this would be something that could be done in a matter of minutes if not hours.

I was thinking of using this money to pay additional down payment on my pre-construction condo. Occupancy is in June.2011 - Can one get the process started so that by the time its time for me to pay the last installment - I might have the funds ready from the RRSP.

2- 3 months !? wow !!!

 

[UrbanVigor]

I did it with 2 separate RRSP accounts and both were fairly quick to deposit the funds but certainly not overnight or just a few days. So the sooner, the better.

You need to fill out the standard form and fax it to them (I'm all for scanning and sending via email, but they may insist on fax) unless you do this at your different branches, I suppose, though ultimately the administration takes place at a central office so walking into the branches would take extra time and they would only serve as a mail depot in that sense.

 

[Tuscani01]

I also did it recently. It took about 2 weeks for the money to be withdrawn.

 

[Jin-N-Juice]

You need to complete Area 1 of form T1036 (http://www.cra-arc.gc.ca/E/pbg/tf/t1036/README.html) and provide the form and withdrawal instructions to the financial institution(s) holding your RRSP. You need to complete a seperate T1036 for each financial institution. You usually do not need to send any other documentation as banks do not verify your eligibility to withdraw, as long as you completed the T1036 (specifically - Area 1, Part A)

Depending on what your RRSP is invested in, the withdrawal should be quick. If you include in your instructions that you want the proceeds of withdrawal sent to your bank account instead, then it will definitely be quicker than having a cheque mailed out.

 

[Jonny5]

2 to 3 months is a long time. Banks do delay as long as possible as a matter of policy to maximize fee collection, but that is ridiculous. If your RRSP holds only cash nothing is stopping them from providing it to you when you hand them the papers. More complex investments add extra business days for investments to be sold and the cash settled in your account. I'm pretty sure the banks don't contact CRA in advance of giving you the money. They just review your documents to check that you are not trying to avoid withholding tax. CRA doesn't need to look at the withdrawal until they asses your return.

You can see a sample of the form here: http://www.cra-arc.gc.ca/E/pbg/tf/t1036/

 

[zaindo]

Thank You all, That addresses the question i had in mind. Much appreciate response from every one !!

Cheers.