KAMLOOPS REAL ESTATE
HOME BUYER'S GUIDE: RRSPs & HOME BUYERS
Purchasing Your First Home? RRSPs Can Help You!
Did you know that as a first-time home buyer there's a federal program in place to assist you with the purchase of your first home? Under the Canadian federal government's Home Buyer's Plan, you can use up to $25,000 (or $50,000 per couple) in Registered Retirement Savings Plan (RRSP) savings to help finance the down payment on your first home. The great news is that you actually have 15 years to pay back your RRSPs, penalty-free. This time frame will give you plenty of time to get settled into your new home.
To qualify, your RRSP funds must be deposited for at least 90 days prior to the purchase of your new home. By working with qualified professionals like River City Realty, we'll help ensure that the required home purchasing documentation is completed for you. Prior to withdrawing any RRSP funds, you'll need a home purchase contract.
Alternatively, if you have $25,000 in savings and these funds are not located in an RRSP, you may want to utilize the Home Buyer's Plan to its maximum advantage. You could consider transferring your savings into an RRSP and then withdrawing them through the Home Buyers Plan to receive the tax benefits. Remember, this will need to be done at least 90 days prior to the purchase.
Not ready to buy for another few years? Consider the benefits of utilizing a Tax Free Savings Account (TFSA). With a maximum contribution of $10,000 per year, you can save for your future real estate investment. The great advantage of a TFSA is that you can withdraw anytime without penalty, and most importantly, it's tax-free! Before you make your financial decision, remember to always ask advice from an expert such as your financial advisor, lawyer and or tax specialist. These professionals can help determine which approach is best suitable for your financial situation.