Did you know that you can use your RRSP as part of your down payment?
The Canadian government offers a program called the Home Buyers' Plan (HBP), which allows you to withdraw up to $35,000 from your RRSPs ($70,000 for a couple!) to put towards your downpayment. 💰
Currently, the HBP withdrawal limit is $35,000.
✏️ Eligibility:
- First time home buyers **
- You must be a resident of Canada at the time you withdraw funds from your RRSPs and up to the time your home is bought or built
- You must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it
✏️ To qualify:
- The RRSP funds you're using must be held for at least 90 days, and thee withdrawal must be made within 30 days of acquiring the home.
- You must be able to provide a signed agreement to buy or build a qualifying home.
- You will need to fill out a T1036 form from the CRA website
- The withdrawal is not taxable as long as you repay it within a 15-year period - the first payment is due two years after the withdrawal is made.
** You may be able to re-qualify again after 4 years.
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