Use RRSPs as a Down Payment…
This program allows the home purchaser(s) to borrow up to $25,000 from their RRSPs. They do not have to pay tax or interest while using the funds as part or all of their down payment. This also applies to the spouse or partner allowing as much as $50,000 to be put towards the down payment.
To qualify, the following criteria must be met:
- Participants must be either first time home buyers or cannot have owned a home for four years plus a day.
- The loan must be paid back to the RRSP over 15 years. The first payment is due within the year that the funds were borrowed and 1/15 of the loan must be paid back annually.
- Participants must be residents of Canada.
- The property must be owner occupied.
- Funds being drawn from the RRSP must have been invested for at least 90 days.
This program has proved both helpful and popular with many Canadian home buyers. Be sure to consider this option when buying your home.
Len Shorkey
