"Retire" To Your First Home
Mention an RRSP (Registered Retirement Savings Plan) and most young peoples' eyes glaze over, as retirement savings are usually the last thing they would consider putting money aside for early in their working lives. But if you know of someone who will eventually be in the market for a first home, you'll want to pass this article onto them as it highlights how a "retirement" vehicle can double as valuable down-payment assistance when the buyer needs it most.
Under the Home Buyers' Plan, a couple may withdraw up to $25,000 each from their RRSPs for a downpayment on their first home, with the stipulation that they repay the money back into their RRSPs over the subsequent 15 years. The RRSP withdrawal money provides a higher down-payment, allowing the couple to qualify for their first home sooner, have lower mortgage payments and possibly even avoid paying CMHC mortgage insurance fees if their down-payment is large enough. First-time buyers may also qualify for a government "First-Time Home Buyers' Tax Credit" and "Land Transfer Tax Rebate".
First-time homeowners would be wise to place "learn about first-time buyer benefits" high on their list of New Year's resolutions! Remember, there's never any obligation for calling with your questions!