First time buyers: Make the most of the Home Buyers Plan

If you’re a first time homebuyer, you can use the federal Home Buyers Plan (HBP) to take out funds from your registered retirement savings plan (RRSP) to use towards a down payment on a qualifying home.

The Plan allows first time buyers to withdraw up to $25,000 from their RRSP (or, up to a maximum of $50,000 per couple) tax free, and have 15 years over which to pay the funds back into their RRSP.

While 44 percent of first-time homebuyers are using the HBP to make a down payment, 46 percent of recent first-time buyers had no RRSP savings at all to use toward a down payment, according to mortgage insurer Genworth Financial Canada.

If you or someone you know would like to learn more about the HBP or about saving for a down payment, talk to your Invis mortgage professional. Also, from the Financial Consumer Agency of Canada has useful information on making a budget and sticking to it.

Pam Martin, Invis, Mortgage Broker, Mortgage Rates, Kelowna,Vernon, Penticton, Okanagan, British Columbia, Canada