{"id":1992,"date":"2023-07-11T17:53:03","date_gmt":"2023-07-11T17:53:03","guid":{"rendered":"https:\/\/mymortgagepros.com\/?p=1992"},"modified":"2024-02-08T05:45:46","modified_gmt":"2024-02-08T05:45:46","slug":"first-time-home-buyers-plan","status":"publish","type":"post","link":"https:\/\/mymortgagepros.com\/first-time-home-buyers-plan\/","title":{"rendered":"Use Home Buyer’s, RRSP plans for down payment on a mortgage!"},"content":{"rendered":"\n

RRSP Home Buyers’ Plan<\/strong><\/h2>\n\n\n\n

The Home Buyers’ Plan (HBP), a program offered by the Government of Canada, is designed to help Canadians purchase their first home. The program allows RRSP account holders to withdraw money from their accounts tax-free<\/strong> when the proceeds are used to buy a qualifying home. Once you withdraw the funds, you have up to 15 years to pay it back. Repayments begin in the second year after the year in which you withdraw the funds.<\/p>\n\n\n\n

Unless you have a disability (or are helping a relative who has one) to buy or build a home, you must be a first-time home buyer <\/strong>to qualify for this program. To be considered a first-time home buyer, you must have not owned a house that is your principal residence in the last 4 years before withdrawing the funds from your RRSP for a home purchase. RRSP contributions must also be held in the RRSP for at least 90 days before they qualify to be withdrawn to participate in the HBP.<\/p>\n\n\n\n

For more on how to qualify, visit the CRA site\u00a0How to participate in the Home Buyers’ Plan.<\/strong><\/a><\/p>\n\n\n\n

Note that qualifying account holders can withdraw funds from more than one RRSP account. For example, suppose you and your spouse have an individual RRSP and choose to participate in the plan. In that case, you can withdraw a combined maximum of $35,000 per person for a total of $70,000. If you have an individual RRSP and a Spousal RRSP, you can withdraw a combined maximum of $35,000 CAD (or CAD-equivalent) under the HBP.<\/p>\n\n\n\n

After years of saving, monitoring the real estate market, and weighing your options with family \u2013 you’ve decided to take the leap into homeownership. Congratulations! This is one of the most exciting and most important purchases you will make in your life.<\/p>\n\n\n\n

Luckily, the different levels of government in Canada offer a variety of programs to help make homeownership more attainable. Depending on where you live, there may be programs available to you \u2013 such as the First-Time Home Buyers’ Plan \u2013 that can help lessen the financial burden of buying a home and can help make your dreams of homeownership a reality.<\/p>\n\n\n\n

Let’s take a look at some of these programs.<\/p>\n\n\n

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Learn more about firt time home buyers program and down payment sources.<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n

First Home Savings Account (FHSA)<\/strong><\/h2>\n\n\n\n

The\u00a0is a new registered account that can help Canadians save for a down payment for their first home. It allows you to contribute an annual tax-deductible amount of up to $8,000 with a lifetime contribution maximum of $40,000 per person. The great advantage of an FHSA is that it’s like an\u00a0RRSP<\/strong><\/a>\u00a0and a\u00a0TFSA,<\/a><\/strong>\u00a0where your contributions to the account are tax deductible, and any qualifying withdrawals from the account are tax-free. Just like any registered account, you can invest and hold multiple investments inside an FHSA, which can potentially help in growing your money for a future home purchase.<\/p>\n\n\n\n

Some other key information to know about the FHSA:<\/p>\n\n\n\n