The Home Front Blog

RRSPs and Your FIRST Home!

First Time Home Buyer RRSP

You know it…

Saving all those pennies for your first home can be hard… but you may already have the money waiting!

The help

The Government of Canada has a Home Buyers’ Plan helps you get to that amazing achievement of owning your own home! As of 2019, it now allows you to withdraw up to $35,000 in calendar year from your RRSP to buy a home. All you have to do is repay the withdrawals from your RRSP within 15 years. The bonus? Any repayment won’t be included in your income!

And another perk!

Whatever funds you have saved outside of your existing RRSP for your Down Payment can be “detoured” into an RRSP first. This means you earn the tax benefit and then you can take out the money from the RRSP to use as your down payment. That’s winning at life.

How does this work?

  1. Look at your funds and talk to your mortgage broker.
  2.  You will need a letter from your bank stating the amount you have placed in an RRSP and that you have completed the first time home buyer forms required by the Government of Canada
  3. Sign an affidavit with Rohit Communities that you are a first time buyer
  4. Provide Rohit Communities a post-dated cheque dated for 91 days from the date of condition removal

What else should I know?

With a $3,000 deposit, you can remove conditions on your new home!

The remainder of your down payment goes to your RRSP first! We will settle the rest later.