This is a government program that allows home buyers to use their RRSP savings as a down payment.
The basics of the program are:
- Use up to $25,000 per person. So if you have a spouse or partner you could use up to $50,000
- Must be used for purchase of your principle residence & you must be a Canadian resident
- Eligible to first time buyers not living in a house that you own in the last 5 years
- If you are disabled and need special housing or related to someone who is you are eligible
- Pay back to your RRSP account over 15 years. $25,000 / 15 = $1,667.66 per year. If you don’t pay it back then it is included in income for that year and is taxable.
For full information visit http://www.cra-arc.gc.ca and search Home Buyer Plan OR, speak with our Mortgage Broker, Lynne Gibson who will guide you through the process.