Using your RRSP? It can be all or part of your down payment. The rules have changed in recent years, so if you think you know them, double check here!
In February of 1992, the Canadian Federal Government introduced the “Home Buyers’ Plan” (HBP), which allows RRSP plan holders who are also first time home buyers to use up to $25,000 of their RRSP to apply to the purchase of their home. The plan, extended twice, is in effect as of July 1997 until further notice.
Buyers who have not owned a property in the last five years.
Up to two partners in the home can combine their RRSPs for a total maximum of $50,000.
The only subsequent requirement is that they pay the withdrawals back into their plans (without further deductions) over a maximum of 15 years.
Failure to do so will result in 1/15th of the RRSP initially withdrawn having to be added back to taxable income in any year the minimum re-deposit is not made.
For more information on the RRSP Home Buyer Plan or other mortgage financing questions, please contact us at 250-862-1806 or [email protected].