I’ve often blogged about using your RRSP to buy a home.
But here’s a Secret that many don’t know.
Most know that you can withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself and that it requires a repayment of $1,667 every year for 15 years ($25,000/15 years = $1,667). And that any missed repayments are included in your income for that year.
What that mean is, if you’re already making RRSP contributions through a work-sponsored plan, when you receive your RRSP contribution receipt for deposits made during the year, that work-sponsored contribution receipt can be used to satisfy your HBP repayment requirement and the remainder of the receipt could be applied against your RRSP contribution room.
Example: Let’s say you’re already making a $150 per month work-sponsored contribution which equates to $1,800 for the year and the HBP plan requires a repayment of $1,667 per year, you have more than met your yearly obligation.
Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com
Your Vancouver Mortgage Broker For Life
P.S. Who’s the next person you know who wants to save thousands off their mortgage? Be sure to give me a call so we can help them! 604-273-2002