Tag Archives: home buyers plan

Using the Home Buyers’ Plan for a Down Payment

July 29, 2013

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Did you know that Canadians can use money (up to $25,000 per calendar year) from their RRSPs (Registered Retirement Savings Plan) tax-free for a down payment on their first home? It’s a program called the Home Buyers’ Plan (HBP), however there are some conditions for participating (the RRSP contributions must stay in the RRSP for at least 90 days before it cab be withdrawn; it has to be paid back usually within 15 years; the purchase has to be the principal residence).

If you’re looking to buy your first home, but don’t have a down payment saved yet, using your RRSPs can help you purchase a home now instead of slowly saving for a down payment. In addition, if you can use your RRSPs to increase your down payment to at least 20% of the purchase price of the home, you could avoid paying mortgage default insurance and save thousands of dollars.

For more information on the Home Buyers’s Program, visit the CRA information page on the HBP¬†or have a chat with your favourite mortgage broker and we can help guide you through the process.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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