What is the home buyer’s plan? How does it benefit you?
The Home Buyer’s Plan gives you the ability to purchase a qualifying home using your RRSP account. This will enable you to buy a home much faster but allowing you to withdraw up to $25,000.
Here are some of the many rules of the Home Buyer’s Plan:
- The funds in your RRSP account must be in there for a minimum of 91 days
- You may not use locked-in RRSPs
- The funds can be used for other things, not just the down payment, such as furniture, moving expenses, and legal costs
- You can replenish your RRSP over the next 15 year time period or sooner if you wish
- And/or you can add the amount ($25,000 divided by 15 = $1,667) to your income each year and be taxed on it and not replenish your RRSP
- You can use the program again after 5 years of the RRSPs being repaid
- Both spouses are eligible to withdraw up to $25,000 each, at the same time
- One family – one principle residence: if you marry someone who has already used the plan and you move into their home, you are no longer eligible to use the program
- As a first-time home buyer, you are eligible to make a tax-free withdrawal of up to $25,000
This is just one option of many mortgage insured programs. The Home Buyer’s Plan allows you to purchase a qualifying home much quicker.
If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at firstname.lastname@example.org