The following are some general guidelines
for the use of your RRSP's as the downpayment:
• The Homebuyer's Plan allows each purchaser to withdraw up to $25,000.00 from your RRSP's (including a spousal plan) to build or buy a qualifying home.
• You must be a resident of Canada.
• The funds must be repaid within a period of no more than 15 years, in equal installments, and you must accelerate payment to the plan. If in any year you do not repay the amount you have to repay that year, the amount that has not been repaid will be added to your income for that year. Payments commence no later than the second year in which the withdrawal was made.
• All participants on title cannot have owned an owner-occupied home in the previous five years.
• You have to intend to occupy the qualifying home as your principal place of residence no later than one year after buying or building the home.
• The contract of the purchase and sale must be entered into before the funds are withdrawn from the RRSP.
• To participate in the Homebuyer's Plan, you have to withdraw an amount from your RRSP using form T1036.
• The amount being withdrawn must have been in the RRSP for at least 90 days prior to withdrawal.
Please feel free to call or drop me an email if you have any questions.
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