 If
you are thinking about buying your first home, or if you and your spouse
have not bought a home in the last five years, I may be able to show
you how you can use your current RRSP funds for a down payment without
incurring a tax penalty.Under the RRSP Home Buyer's Plan, you are
entitled to a tax-free withdrawal of up to $20,000 from a Registered
Retirement Savings Plan (RRSP) to meet or increase the down payment on the
purchase of a home.
In addition, if the qualifying home is purchased with a spouse,
common-law partner or other individual, each can withdraw up to $20,000.
Imagine the feeling of being able to take out up to $40,000 of your RRSP
savings without being hit with a huge tax penalty. The entire amount can be
put towards the down payment of your house so that you can take advantage of
the fantastic deals that are in the marketplace today. There is no need to
miss out on your dream home while you accumulate a large down payment.
 The best thing of all is that you have fifteen (15) years from the second
calendar year after withdrawal to repay the RRSP. It's just like borrowing
from yourself and taking fifteen years to pay back without interest. With no
maximum limit on repayment, you can even plan an early repayment schedule to
minimize the loss of the tax-deferred RRSP investment. Connie will even
discuss how you can establish a flexible repayment schedule that will fit
within your current budget.
The Home Buyer's Plan becomes a good investment strategy when you
consider the potential for future capital gains. For example, even though
you may be losing out on some tax-free investment income when you withdraw
your RRSP funds, since the money is being invested in your principal
residence, you will benefit from tax-free capital gains on any appreciation
of your home during that time.
I look forward to
meeting with you to discuss your particular situation. Once I have all of
the information I need, I will show you how you can have both the
flexibility in budgeting and peace of mind as you move forward with your
new home purchase or your mortgage renewal.
Give me a call today to find out more about the Home Buyer's Plan. |
