If you’re planning to buy your first home anytime soon, you may be able to take advantage of a helpful federal government program. This enables you to withdraw money you’ve already contributed to your registered retirement savings plan (RRSP) and use it towards anything related to your home purchase, including your down payment, closing costs or real estate fees.
But, the key is that the funds must be in your account at least 90 days before you can withdraw them under the Home Buyers’ Plan (HBP).
You can withdraw up to $25,000 ($50,000 per couple) from your RRSPs tax- and interest-free to buy or build a qualifying home for yourself or a related person with a disability.
Continue reading “Thinking of buying a home? Contribute to your RRSP so you can borrow tax-free!”
“My fellow Canadians, Canada has spoken…” you’ve heard the speech before. Okay, now that the party is over, what’s the hangover gonna look like? It’s hard to say for sure. Politicians are infamous for making promises they can’t keep.
One thing that we (I’m talking about anyone with a mortgage or invested in real estate) should be concerned with is what the Liberals plan to do with housing, mortgage rules, interest rates.
Here’s part of what they have promised.. Good and Bad. Continue reading “Trudeau effect on housing market, interest rates and more….!”
Around 20 years ago, the Federal govt introduced the RRSP Home Buyer’s Plan. The goal was to stimulate a depressed housing market in the early ’90s. The plan is really quite simple. First time homebuyers could borrow up to $20,000 from their RRSP to be used towards the purchase of a home. Buy with a spouse or your common-law spouse and you’ve doubled the amount to $40,000.
There really is no catch. You simply have to pay it back to your RRSP plan over a 15 year period. The minimum payment is 1/15th of the amount that you withdrew payable each year. That’s it.
Today, the plan still exists with a slightly higher limit and more flexibility. You can now withdraw up to $25,000 per person… still capped at 2 people max per purchase (married or common-law spouse). You can also participate in the Home Buyer’s plan if you haven’t owned a home in the last 5 years. This can work to your advantage if you previously owned but sold. click here for the full guidelines and qualifications. Continue reading “Federal Govt’s rrsp Home Buyer’s plan nets this couple a $15,000 tax refund.”