Wednesday, December 2, 2015

TREB: Planning for your down payment

Posted in the
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.