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The-Mortgage-Gal

Home Buyer RRSP

RRSP Payment

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!

 
What is it?

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.

 
Who is eligible?

Buyers who have not owned a property in the last five years.

 
How does it work?

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Failure to do so will result in 1/15th of the RRSP initially withdrawn having to be added back to taxable income in any year the minimum re-deposit is not made.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].

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Tracy Head helps busy families get a head start on home ownership.

With today’s increasingly complicated mortgage rules, Tracy spends time getting to know her clients and helps them to better understand the mortgage process. She supports her clients before, during, and after their mortgage is in place.

Tracy works closely with her clients, offering advice and options. With access to more than 40 different lenders. She is able to assist with residential, commercial, and reverse mortgages in order to match the needs of her clients with the right mortgage package.

Tracy works hard to find the right fit for her clients and provide support for years down the road.

Call Tracy at 250-826-5857 or reach out by email [email protected]

Visit her website at www.headstartmortgages.com

Download her app: Headstart Mortgage Architects

 

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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