You may have heard that your RRSP could be used as a down payment for a home purchase, or toward your mortgage on an Edmonton home. The unique challenges of navigating this process is best left to professionals who have experience and skill in these matters. That’s one reason why Mortgage Tailors is ready to assist you throughout the entire process.
Oftentimes, coming up with the money for a downpayment is the only thing keeping hardworking people from owning their own home. Thankfully, the Canadian government has taken a close look at this obstacle and has passed legislature that has led to the Home Buyers’ Plan, allowing first-time home buyers to use up to $25,000 of their RRSP, without incurring any penalty, to specifically use as the down payment on a home.
Certain conditions apply when it comes to using your RRSP for a down payment on your home’s mortgage in Edmonton. This is one of the main reasons why it’s a smart move to work with a mortgage broker. Their expertise can help you better understand the conditions and how to work within them. To quality for the Home Buyers’ Plan, the following conditions must be met:
- You may only withdraw $25,000. If you are married, or are purchasing with another first-time home buyer, you may each withdraw up to the maximum.
- The funds can only be withdrawn from the RRSP by the owner. Provided you are the owner of the RRSP, you may even withdraw from more than one, however the combined total may not exceed the maximum.
- Funds that are located in a locked RRSP cannot be accessed.
- The owner must show a signed agreement proving your intent.
- As the owner of the RRSP who has taken out a withdrawal, you must buy or begin building before October 1 of the following year.
- The property that is being purchased must be occupied by the owner of the RRSP, with a few exceptions.
- No rental or investment properties can be purchased through the use of the RRSP.
- RRSP owners who are disabled may borrow from their RRSP to buy or build a more accessible home to meet their needs.
- RRSP owners may participate in the Home Buyers’ Plan more than once upon the completion of their first repayment.
You can learn more about how to use your RRSP for a down payment on a home mortgage in Edmonton when you contact City Janisch from Mortgage Tailors. Feel free to call Cindy at 780-298-9502, email Cindy at cindy@EdmontonsBestMortgage.com or visit her website at CindyJanisch.ca, where you will find a wealth of information with regard to making home ownership a reality for you. RRSP for down payment Mortgage Edmonton