# RRSP Home Buyers Plan when getting divorced...help needed!



## dazedandconfused (Mar 12, 2012)

Things happen and people change their hearts :-(

We purchased a beautiful house less than a year ago and now my wife wants out of our relationship. We both took huge RRSP HBP loans out to put a big down payment on it. When we sell
the house, do we have to pay it back right away, or is it the standard 15 years like it would be if we stayed together? Can I use my share to rent an apartment or another smaller house?
Any help? I googled and couldn't find anything on this.


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## MoneyGal (Apr 24, 2009)

You have 15 years to pay it back, no matter what happens to the house it was used to purchase. You are under no obligation to stay in the house for which funds were withdrawn under the HBP to purchase. 

However, your debt and your wife's debt will be included in the division of matrimonial property that you will undertake if/when you divorce. You may find that you don't have much "share" left. Are you both going to leave the house, or is she going to stay in it?


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## dazedandconfused (Mar 12, 2012)

Thanks for the reply MoneyGal, 

Our debts are pretty much the same, we contributed evenly to the house. Unless she is hiding some debt, it should be pretty straight forward. No kids, both worked.....although she did make about 40% more than I did during that time. 

I don't think either one of us can afford the house on our own, so I believe we are going to sell it and split the value.


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## v_tofu (Apr 16, 2009)

Sorry to hear, this may be a moot point, but have you and your wife tried any counselling or anything else to see if things can be worked out before concluding to a divorce? I know it doesn't always work, but I have a friend that was able to make a once bitter relationship into a very happy one now.

Also, does anyone know if there is a min. payment per year for your HBP?

Hope things work out for you DandC


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## Toronto.gal (Jan 8, 2010)

v_tofu said:


> Also, does anyone know if there is a min. payment per year for your HBP?


1/15 
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/rpymnts/menu-eng.html


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## NotMe (Jan 10, 2011)

Dazed - sorry to hear this - and I think your bigger worry might be the penalty for selling your house if you took a fixed rate mortgage. Call the bank today and find out.


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## dazedandconfused (Mar 12, 2012)

It was a variable, but can some banks use the higher of the two (3 months interest vs IRD)?


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