First Time Home Buyer's are allowed to withdraw up to $20,000 from their personal RRSP to use as a down payment on a home, RSP Contributions must be made more than 89 days before the Home Buyers Plan (HBP) withdrawal, contributions that have not been in the RSP for longer than 89 days do not qualify under the Home Buyers Plan. All withdrawals must be made in the same year. The withdrawal can be a single amount or a series of withdrawals throughout the year.
Conditions for Participating in the Home Buyers Plan
The individual must:
- Be considered a "first-time home buyer". You are not considered a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal ending 31 days before the withdrawal, you or your spouse or common-law partner owned a home that you occupied as your Principal place of residence. For example, to participate in the HBP in 2009, the individual or spouse/common-law partner must not have owned and occupied a home as their principal residence at anytime between January 1, 2005 and 31 days before the withdrawal in 2009
- Have entered into a written agreement to buy or build a qualifying home. Obtaining a pre-approved mortgage does not satisfy this condition
- Intend to occupy the home as a principal residence no later than one year after buying or building the home. The home must be bought or built by October 1 in the calendar year following the year of withdrawal. An extension of 1-year or more may be available in some circumstances. If the individual is not able to occupy the home by the end of the 1-year period after buying or building he or she will still be considered a participant in the HBP as the intention was to occupy the home
- Be a resident of Canada from the time the funds are received up to the time the home is built or bought.
Century 21 Lifestyle will be holding a FIRST TIME BUYERS SEMINAR. First time buyers will be informed and educated on mortgage qualificatons, notary and lawyer fees, cost for puchasing a home, insurance, puchase contracts and real estate market conditions. If you would like to be a guest at this seminar please email me for details firstname.lastname@example.org.
As of February 2nd, the prime rate is 3.00%. Best rate: 1 yr closed 4.0% and 4 yr 4.39%