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RRSP Home Buyer Program

2010-01-26 | 14:50:24

You can withdraw RRSP money “tax free” as part of your down payment…..

Highlights:

Each purchaser may borrow up to $25,000 from their RRSP to use as a down payment. A husband and wife can withdraw $25,000 each for a total of $50,000 to be used towards a down payment.

Available to first time homebuyers or those that have not owned in the last 5 years. The home must be located in Canada and be used as your principle residence.

Repayment of the funds to your RRSP must be made within a 15-year period, 15 annual installments is the usual practice.

If the amount is not repaid in a year, the year’s repayment amount will be added to your income and taxed.

Example:

$15,000 is borrowed for a down payment on December 31, 2009. The first $1,000 becomes due in 2010. If it is not paid, the borrower must declare the $1,000 as income in 2010.

This program may be used with the CMHC/GE 5% First Time Buyers program.

The program has been extended indefinitely.

If you have any questions, please contact me directly at 250-588-1887 or email dtognotti@dominionlending.ca