Saving for a down payment can be difficult. Sometimes it can take years to save up enough money to secure your perfect home.
To help ease the burden of this expense the Canadian government has created a Home Buyers’ Plan program, which essentially allows you to borrow your own funds from an RRSP to purchase a home.
First-time homebuyers can withdraw up to $35,000 from their RRSP to increase their down payment. If you are buying with someone who also qualifies for the program, then you can double that amount to $70,000.
In order to qualify for the Home Buyers' Plan you must:
- Be a first-time homebuyer
- Have a written agreement to purchase or build a qualifying home
- Be a resident of Canada when your RRSP funds are withdrawn and…