Did you know there’s a government program designed to help first-time buyers just like you? The Home Buyers’ Plan is a federal program that can make a huge difference when it comes to getting that down payment squared away. Let’s take a look at what this amazing resource has to offer you!
What is the Home Buyers’ Plan?
The Home Buyers’ Plan allows you to take funds out of your Registered Retirement Savings Plan, known as your RRSPs. This means you can borrow up to $25,000 for your downpayment tax-free. What’s more, if you and your partner both have RRSPs, you are each entitled to withdraw this same amount for a total of $50,000
Am I Eligible?
In order to participate, you or your partner cannot have owned a home in the last four years. You must also have entered a written agreement to buy or build a qualifying home where you will live for the first year as your primary residence. As for the actual loan, you must withdraw within 30 days of taking over the title. Lastly, your RRSP’s must have been in your account for at least 90 days prior to withdrawal.
How Can I Apply?
Your next step is to fill out section one of the T1036 Form. You will keep section two for your bank, who will fill it out as the process is completed. Your bank will also mail you a form confirming the amount you’d like to withdraw.