Financing Articles
- Financing Power
- Why use a Mortgage Broker?
- Ottawa revamps mortgage rules
- First-time buyers - SAVE PTT
- Self Employed Simplified
- New Immigrants to Canada and Non-Residents
- Common Home Buying & Mortgage Terms
- Closing Costs
- First Time Home Buyers Plan
- Mortgage Calculator
- FAQ's
- Credit Score
- Become Mortgage-Free Faster
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First Time Home Buyers Plan
How does it work?
The First Time Home Buyers Plan allows you to withdraw up to $20,000 from your RRSP's to buy or build a qualifying home.
Each applicant can withdraw up to $20,000 without a tax penalty.
Withdrawals must be repaid over 15 years.
Eligibility:
You are not considered a first time home buyer if you have owned a home that you have occupied as your principal place of residence in the last 5 years.
You must occupy the qualifying home as your principal residence.
The funds must be in your RRSP for at least 90 days.
The mortgage must be 70% or more of the fair market value of the residence.
You can participate in the Home Buyers Plan program more than once in a lifetime if :
All previous RRSP withdrawals were repaid in full and if you meet the home buyers' conditions as stated above.
You must be a resident of Canada to participate.
Bonus - In BC, if you qualify as a First Time Home Buyer and the purchase price of your home is under $425,000 you will not be required to pay the land transfer tax. There is a partial exemption between 425k and 450k (sliding scale).
Disclaimer: The information on this website is intended to be as accurate and current as possible, however, readers should always consult with their lawyer to ensure there have been no recent legal modifications.
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