Use the Federal Home Buyers Progam and a Tax Refund to Boost Down payment!
The Deadline for this RRSP season to help with your first home; contribute before March 1, 2013!
It’s RRSP season! If you’re a first-time buyer, consider how the Federal Home Buyers’ Program (HBP) and a tax refund can boost the funds you have available for your purchase.
If you have RRSP contribution room, you should contribute your savings before March 1, 2013 so you can qualify for a 2012 tax refund based on the amount you contribute and your marginal tax rate. Then, after 90 days, you can redeem those funds under the Home Buyer’s Plan (HBP). The HBP lets first-time homebuyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs. You’ll need to pay those funds back, of course, on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership!
While your funds are tied up for those 90 days, we can get you an interest rate hold. Let’s have a conversation about the HBP and determine if this strategy can work for you.
For more information on how to use this tool for the purchase of your first home please contact myself at kevinbaker@kwhometeam.ca or Tracy Bennett at Bennett Capital tracy.bennett@bennettcapital.ca
This entry was posted on January 28, 2013 by kevinbakerrealestate. It was filed under Buyers, Kitchener Waterloo, New Construction and was tagged with CMHC, condo buying, condo selling, condo units, contribution, downsizing, federal home buyers program, first time buyer, kitchener, loft, market, market update, mortgage, real estate, remax, rrsp, tax refund, twin city realty, waterloo.
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