Short on a downpayment?
If you are a first time buyer looking to purchase a home, Revenue Canada has a program available that you may not know about. The Home Buyers Plan allows qualifying buyers to withdraw money from their RRSP’s to use as their downpayment up to $25,000 per year.
The RRSP’S withdrawn must be repaid in a period of 15 years with a certain amount (generally 1/15th) being repaid each year. If the yearly amount isn’t repaid, the amount will then be applied to your income for that year.
Certain qualifications must be met including;
-you must be a first time home buyer
-you must be the plan owner of the RRSP
-the house must be your primary residence
-you must reside there for a minimum one year period
-you can’t own the home for more than 30 days before the withdrawal is made.
-you must be a resident of Canada and the home must also be located in Canada.
This is a great program that allows first time buyers to own their own home if they are short on a downpayment. A 5% downpayment may not seem unreachable anymore as long as you have been putting money aside in your RRSP’s.
If you are interested in buying a home and in the Saskatoon real estate market, contact me and I will assist you with all aspects of your purchase. My goal is to make your transition into homeownership as seamless as possible.
Saskatoon Real Estate Agent
Century 21 Fusion