“What is the Home Buyers Plan?”

“What is the Home Buyers Plan?”

 

The Home Buyers Program is a great way for first time buyers, and some repeat buyers to save and invest money in their RRSP and then transfer it to your down payment when you purchase a home. Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use this program a second time.

 

For exact & current information on the Home Buyers Plan, please visit Canada Revenue Agency. www.cra.ga.ca

Enter “Home Buyers Plan” in the search box

 

Some general guidelines for the Home Buyers Plan are:

 

·         You cannot have owned your principal residence in the last 5 years;

·         Each purchaser may withdraw up to $25,000 from their RRSP;

·         You must make repayment payments to your RRSP of equal amounts over the next 15 years;

·         If the amount is not repaid in a year, that year’s amount will be taken into income and taxed;

·         IF less than 1/15^th is repaid in one year, the difference is taken into income for that year and taxed;

·         The home must be intended to be your primary residence;

·         The funds must be in your RRSP for at least 90 days prior to withdrawal.

 

All this information and so much more are offered free to all our clients in our Right Priced Realty.com 3-stage buyer’s manual. Please call us for a free copy and further information, 604-970-0393.

 

Source: The Canadian Revenue Agency & August 13, 2010 Edition of Realtor Link

 

 

 

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