home buyers plan

Understanding the Home Buyers’ Plan & Using Your RRSP’s for a Down Payment

 

You want to use your RRSP’s as down payment and you want to ensure that it’s being used as part of the Home Buyers’ Plan.

So what does that mean?

The Home Buyers’ Plan is a program that allows you to withdraw up to $25,000 in a calendar year from your RRSP’s to purchase or build a qualifying home.home buyers plan

Some of the rules with this program are;

 

Let’s look at an example:

In 2013 your RRSP withdrawal is $19,500

In 2014 no re-payment is made

In 2015 your minimum re-payment is $1,300 ($19,500 / 15 years = $1,300 per year)

If you continue to make a payment of $1,300 each year, you will have repaid your Home Buyer’s Plan within the 15 years allowed.

This is just one program available to first-time home buyers, make an appointment with your Mortgage Broker/Agent today to learn more about other programs and how you qualify.

written by Ana Cruz

Contact the L A Mortgage Team today to review your options! www.lamortgageteam.com 905.581.7407

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