First Time Buyers

The Adventure into Home Ownership...

Searching for your first home is a fun and exciting adventure however it can also be very confusing and financially difficult. To assist with your down payment the federal Home Buyers Plan allows first time home buyers to withdraw up to $25,000 ($50,000 for a couple) from their RRSP for the purpose of buying or qualifying home. The primary benefits are that the RRSP issuer will not withhold tax on the amount nor will you have to claim the amount as income. The amount must be repaid to the RRSP within 15 years with a minimum annual payment of 1/15th of the amount withdrawn. If a repayment is not made for a given year the minimum repayment is included as taxable income for that year. 

Conditions:

  • You have to make your withdrawal request in the same year you with to participate in the Home Buyers Plan
  • You cannot have previously participated in the plan
  • You have to be a resident of Canada
  • You have to enter into a written agreement to buy of build a qualifying home
  • You can withdraw a total of $25,000 ($50,000 for a couple). Multiple withdrawals are allowed. 
  • You have to be considered a first time home buyer

 

To learn more about using your RRSP to assist with your first home purchase please contact River City Credit Union and one of our knowledgeable representatives would be delighted to help you.

 

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