What is the Home Buyer's Plan?
Your home purchase is likely the most financially significant decision you will ever make. It is therefore crucial that you understand the different opportunities and programs available to help you save money on your mortgage.
Under the Home Buyer's Plan, The Government of Canada provides tax benefits to qualified individuals when they choose to use their RRSPs to fund their home purchase, or that of a related individual with a disability. Through this program you may withdraw up to $25,000 from your RRSPs without incurring any tax penalties, granted the funds have been in your RRSP for a minimum of 90 days. Since this withdrawal is considered a loan, the balance must be repaid to your RRSP within 15 years, with the first payment due within two years of the withdrawal. Your annual Notice of Assessment will indicate the total amount required for repayment each year. To obtain further information regarding the benefits, conditions, and qualifying criteria please contact me directly or refer to the Canada Revenue Agency Website.
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