*ADVERTORIAL*The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.Eligibility requirements to withdraw funds from you RRSPs to participate in HBP include:
- Being a first time home buyer with a written agreement that you will be buying or building a qualified home.
- Assisting a relative with a disability in buying or building a qualified home. (The person with the disabilities’ name must be on the agreement for this one)
- You must occupy the qualified home and use it as your primary place of residence within one year after buying or building it.
Unless you are a person with a disability or helping a relative with a disability purchase or build their first home then you must be a first time home buyer to participate in the Home Buyers’ Plan. A first time home buyer is calculated within a four year period in which you (your spouse or common law) did not occupy a home as a first time home owner.Using money from your RRSPs is a great source of funding for your mortgage down payment. The Canadian government’s HBP allows first time home buyers the opportunity to borrow up to $25, 000 from their RRSPs for a down payment, tax free! And if you are purchasing with someone who is also a first time homebuyer, you can both participate which will combine and become $50, 000.One important factor to consider is that the HBP is considered a loan and must be repaid within 15 years.For more expert advice contact:Anat Papp, Sales RepresentativeGreenfield Real Estate Inc, BrokerageIndependently Owned and Operatedmobile: 416-712-6807phone: 416-226-1020fax: 416-398-1021http://AnatPapp.com