Are you a first-time home buyer looking to buy the home of your dreams? The hot market combined with rising inflation and interest rates may make saving for the down payment more of a challenge. If so, you’ll want to know about the federal government’s Home Buyers’ Plan (HBP). This program lets you use up to $35,000 of your RRSP savings toward a down payment on a qualifying home. Not only will you be able to reduce the amount of your mortgage, you may also be able to avoid default insurance premiums if you have at least a 20% down payment.

The Details:

• You must qualify as a first-time home buyer
• Your RRSP funds must be on deposit for at least 90 days before you withdraw them
• You must have a written agreement to buy or build a qualifying home
• You are required to pay back the withdrawn funds within a 15-year period
• If you pay back the money within the 15 years, the funds are not taxable

Keep in mind:

• Automating your RRSP contributions will help you keep your repayment schedule
• You must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it
• Even if you have previously participated in the HBP, you may be to do so again if your repayable HBP balance on January 1^st is zero and you meet all other HBP conditions

One Grand Plan:

Did you know our One Grand Plan can also help you get in to your first home sooner? This simple and effective program helps you put away at least $100 per month to build your savings. And if you meet the program’s conditions, we’ll give you $1000 toward your down payment!

“Saving for a home may seem like a challenge, but like anything, building your down payment takes small steps and a variety of strategies to make it achievable,” says Cindi Levine, Mobile Mortgage Manager for Coastal Community. “Ask us how you can start today!”