By Mark McLean
November 13, 2015
In today’s real estate market, there are ways to reach your ultimate home buying goal. While you need may need to consult with a financial advisor in regards to your individual savings plan, there are a few programs you should consider that may help build up that nest egg, or lower the overall amount that you may need.
The Home Buyers Plan (HBP) is a program that allows you to withdraw up to $25,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualified home. Your RRSP issuer will not withhold tax on withdrawals that meet applicable HBP conditions. Before you can withdraw funds, however, you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.
An interesting point: if you are buying a qualifying home together with your partner or other individuals, each of you can withdraw up to $25,000. That can certainly help build up the funds required for your down payment.
Click here to read what TREB President (and Manager & Creative Director at Bosley) had to say...
For more info on selling or buying a condo or house, and for info on the current market, contact me by email or call me at 416-322-8000.
