Did you know? The Canadian government offers a program known as the Home Buyers’ Plan (HBP), specifically designed to help first-time homebuyers achieve their dream of owning a home. The HBP allows eligible individuals to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP), and for couples purchasing a home together, the withdrawal limit increases to $70,000.

The Home Buyers’ Plan operates as a self-loan, where the buyer is required to repay the withdrawn amount to their RRSP over a 15-year period, should they utilize it for the purchase of their first home. If the funds are not repaid within 15 years, a portion of the withdrawn amount will be taxed as income each year until fully paid. The repayment period begins the second year after the year when the funds were first withdrawn from the RRSP(s) for the HBP. For example, if funds were withdrawn in 2023, the first year of repayment will be 2025.

To qualify for this plan, individuals must meet the following criteria:

• Must be a first-time homebuyer.
• You are considered a first-time homebuyer if, in the four-year period, you did not occupy a home that you owned, or one that your current spouse or common-law partner owned.
• If you have recently been divorced or separated, you can qualify as a first-time buyer again, assuming you have been living separate and apart from your spouse or common-law partner for at least 90 days and are not living in a home owned by a new partner or spouse at the time of withdrawing funds.
• Must have a written agreement to buy or build a qualifying home.
• You must be a resident of Canada when you withdraw funds from your RRSPs under the HBP and up to the time a qualifying home is bought or built.
• You must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it.

Moreover, if you have previously participated in the HBP, you may be able to do so again if your repayable HBP balance on January 1st of the year of the withdrawal is zero and you meet all the other HBP eligibility conditions.

Taking advantage of the Home Buyers’ Plan can significantly ease the financial burden of purchasing your first home. However, navigating through the requirements and details of the plan can be complex. That’s where the expertise of Neena Parmar, a Dominion Lending Centres mortgage professional, can be invaluable.

Neena Parmar, with her wealth of experience and knowledge, can guide you through the process, ensuring that you make the most of this opportunity. Here are some insights into how Neena Parmar can assist you:

1. Understanding Your Eligibility

Neena Parmar will help you determine your eligibility for the Home Buyers’ Plan. Whether you are a first-time homebuyer, recently divorced, or separated, she can provide the necessary guidance to ensure you meet the criteria set forth by the HBP.

2. Explaining the Process

Understanding the process is crucial. Neena Parmar will walk you through the steps involved in the Home Buyers’ Plan, from the initial withdrawal of funds to the repayment process. She will ensure you have a clear understanding of how the plan works and what is expected from you.

3. Maximizing Benefits

With Neena Parmar’s expertise, you can maximize the benefits of the Home Buyers’ Plan. She will help you calculate the amount you can withdraw from your RRSP and provide insights into how this withdrawal can best suit your financial situation.

4. Creating a Repayment Plan

Repaying the withdrawn amount is as important as the initial withdrawal itself. Neena Parmar will assist you in creating a repayment plan tailored to your financial circumstances, ensuring that you meet the 15-year repayment deadline and avoid unnecessary tax implications.

5. Providing Ongoing Support

Neena Parmar will be with you every step of the way, providing ongoing support and guidance. Whether you have questions about the Home Buyers’ Plan or need assistance with your mortgage, she is there to help.

How to Get Started

If you are interested in learning more about the Home Buyers’ Plan or other first-time homebuyer support, please don’t hesitate to reach out to Neena Parmar, Dominion Lending Centres mortgage expert. With her expertise and dedication, Neena Parmar will help you navigate the Home Buyers’ Plan and guide you through the process of purchasing your first home. Contact her today to take the first step towards fulfilling your dream of homeownership!