There are benefits exclusive to first time home buyers designed to assist you with your purchase.
RRSP Home Buyers Plan
- You can borrow up to $35,000 directly from your RRSP if your money has been in your account for a minimum of 90 days before you are withdrawing.
- There is no tax penalty
- You have 15 years to pay the money back into your RRSP
- First time home buyers residing in the same house, can combine their RRSP’s up to a maximum of $70,000.
Essentially, you are borrowing from yourself at 0% interest.
If you are wanting to use your RRSP’s as your down payment, your bank will require you fill out a T1036 form in order to . Here is a link to the Canada Revenue information on how to participate, withdraw funds, and how to repay as well as a link for the withdrawal form:
First Time Home Buyers Incentive
Read more about the first time home buyers incentive program released September 2019.
First-Time Home Buyer’s Tax Credit
- Allows you to recover up to $750 based on current tax rates
- Allows you to recover some of the associated costs incurred with the purchase of your new home such as legal fees, land transfer taxes, and home inspections.
Here is a link to Revenue Canada regarding the First Time Home Buyer Tax credit (Home Buyers Amount) .
Owning your first home is an exciting yet daunting endeavour. The Mortgage Sisters are ready to walk you through the process from beginning to end to carry you through this journey with confidence.