The Home Buyer’s Plan is a Proven Path to the Canadian Homeownership

Are you dreaming of owning a house but struggling to save enough for the minimum down payment? The Home Buyers’ Plan allows first-time homebuyers in Canada to experience the privileges that come with Canadian homeownership. Eligible individuals may withdraw up to a whopping thirty-five thousand dollars from their Registered Retirement Savings Plans under the said initiative offered by the federal government.

Minimum Eligibility Criteria for the Home Buyer’s Plan

You or your spouse/common-law partner must not have owned a primary residence in the past four years.

You must be a Canadian resident at the time of withdrawing the required amount from your Registered Retirement Savings Plan account.

You cannot utilize the withdrawn sum in anything other than purchasing or constructing a qualifying property for yourself or a related individual with a listed disability.

How to Make the Most of Your Home Buyer’s Plan

Thoroughly review the aforementioned eligibility criteria to ensure beforehand that you meet the specified requirements.

If you have not already, start contributing to your Registered Retirement Savings Plan. Note that your last deposit must occur at least three calendar months before the estimated withdrawal date to qualify under the Home Buyer’s Plan.

Reach out to your financial institution to initiate the withdrawal process and you must complete the same within a calendar month of taking possession of your new house.

Report the withdrawal from the Home Buyer’s Plan in your income tax return so that the same is not included in your taxable income for that year.

You must repay whatever you may have withdrawn from your Home Buyer’s Plan in over fifteen years. Repayments will start in the second year following the year of withdrawal and the repayment amount is one-fifteenth of the total sum of money that you may choose to withdraw in any given year. However, if you do not pay off the required amount, it will be subject to taxation for that year.

Call us now for any queries or further information on the Home Buyer’s Plan!