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Terry & Margot
Canning
Sales Representatives

Direct: 905-723-4415
Office: (905) 665-2500
Terry Cell: (905) 242-9217
Margot Cell: (905) 439-7502





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Using your RRSP to make a down payment on your first home - a wise move
Saving up the minimum 5% down payment on the purchase of a home is not always easy, especially when its your first home. That's why the Home Buyers' Plan was created. If you are buying your first home or if you or your spouse have not owned a home during the five years prior to the date of withdrawal from your RRSP, you can participate in the Home Buyers' Plan and use the funds accumulated in your RRSP as a down payment without paying tax on the funds withdrawn. Under the plan:
  • You and your spouse can each withdraw up to $20,000 from your RRSP
  • You have 15 years, as of the second calendar year after the withdrawal, to repay your RRSP
  • Your annual repayment must be equal to 1/15 of the total amounts withdrawn
To be eligible for the Home Buyers' Plan, the home must be located in Canada, purchased or built before October 1 of the calendar year following the RRSP withdrawal and serve as the buyer's principal residence within a year of being purchased or built.

It is however important to mention the three financial considerations that participation in the Home Buyers' Plan implies:
  • The amounts withdrawn will not accrue interest until you pay them back to the RRSP. It is therefore a good idea to compare the rate of return your RRSP is earning versus the rate on your mortgage and see which one is better.
  • If you are not able to repay the minimum amount in a given year, you must add that amount to your income on your income tax return.
  • The amounts repaid will not be considered RRSP contributions and will therefore not be tax deductible.
  • If you would like more information on the Home Buyers' Plan, call our TelNat Customer Service Centreat1-888-483-5628 (options 5 and 3), visit our website at www.nbc.ca or drop by one of our branches.
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REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA's By-Laws, Rules, and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.

The information contained on this site is based in whole or in part on information that is provided by members of The Canadian Real Estate Association, who are responsible for its accuracy. CREA reproduces and distributes this information as a service for its members and assumes no responsibility for its accuracy.

This website is operated by a brokerage or salesperson who is a member of The Canadian Real Estate Association.

The listing content on this website is protected by copyright and other laws, and is intended solely for the private, non-commercial use by individuals. Any other reproduction, distribution or use of the content, in whole or in part, is specifically forbidden. The prohibited uses include commercial use, "screen scraping", "database scraping", and any other activity intended to collect, store, reorganize or manipulate data on the pages produced by or displayed on this website.
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Thank you,

Terry & Margot Canning

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