Ways to Save For A Down Payment - The Home Buyers Plan

Saving for a down payment doesn't have to feel like a dream. There are ways to reach an ultimate home buying goal. The Home Buyers Plan is a program that can help first-time home buyers with their down payment.

What is the Home Buyers Plan (HBP)?

This program allows an individual to withdraw up to $25,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualified home.

How does the Home Buyers Plan work?

The RRSP issuer will not withhold tax on withdrawals that meet applicable HBP conditions. Before withdrawing funds, an individual must have entered into a written agreement to buy or build a qualifying home which must be occupied within one year after purchasing or building the home.

Who is Eligible for the Home Buyers Plan?

*An individual must be considered a first-time home buyer *An individual must have a written agreement to buy/build a qualifying home for themselves.

Or

An individual must have a written agreement to buy or build a qualifying home for a related person with a disability, or to help a related person with a disability buy or build a qualifying home (obtaining a pre-approved mortgage does not satisfy this condition).

Reference:

TREB President Mark McLean

http://www.trebwire.com/…/…/ways-to-save-for-a-down-payment/

Canada Revenue Agency

http://www.cra-arc.gc.ca/…/rr…/hbp-rap/cndtns/menu-eng.html…