Need a little help becoming a homeowner? If you’re looking to buy your first home and want to make a bigger down payment, you can take advantage of the Home Buyers’ Plan (HBP).
The HBP is a government program that lets you make a tax-free withdrawal of up to $25,000 from your RRSPs to finance the down payment on your home. For a couple, the amount doubles to up to $50,000.
This program is very beneficial because it lets you put more money down when you buy your property, which reduces your mortgage!
Conditions for taking advantage of the HBP
• You are eligible for the HBP if this is your first property or if you have not owned a property for at least 5 years. You can benefit from the program more than once if you repaid your past HBP amounts in full and on time.
• Amounts withdrawn must be payed back into the RRSP (without interest) within 15 years, starting the second year after they were withdrawn under the HBP.
• Amounts withdrawn must have been held in an RRSP for at least 90 days before they are withdrawn.
• You must intend to live in the property as your primary residence.
Taking part in the HBP without an RRSP
Don’t have much savings or an RRSP? You can still take advantage of the HBR!
It’s a strategy worth exploring with your advisor. Call 514-388-3434 and make an appointment today.