RRSP Home Buyer Plan for the First Time Buyers

As you know, the cost of residential properties and houses is increasing and it is getting difficult to approve the mortgage for it. In this kind of situation, it is difficult for most of the people to buy their first home. However, there are lots of plans available for it and some certain plans are provided by government for the first time buyers. It will be beneficial for the first time buyers to know about RRSP home buyer plan.

What is RRSP home buyer plan:

If you opt for RRSP home buyer plan Ottawa, you will be allowed to withdraw up to $35,000 from RRSP to buy or construct your home. If you also want to participate in this homebuyer plan, you should know about the eligibility conditions and withdrawal conditions.

Eligibility conditions for home by your plan:

If you are interested in this home buyer plan, you must fulfil the following eligibility criteria for it:

Only the first-time home buyers can go for this plan in Ottawa.

The applicants must have all the written agreement to construct or by the qualifying home for himself/herself, any related person having disability.

The applicant must intend living in the qualifying home within the first year of constructing or buying it. If you are going to apply for any related person having disability, that person must intend living in the home as the primary residence.

Withdrawal conditions in home by your plan:

If you fulfil all the eligibility conditions, you should also know about a withdrawal conditions before applying for RRSP home buyer plan Ottawa.

First of all, you must be a resident of Canada at the withdrawal time. The applicants must receive all the withdrawals in the same calendar year. The maximum withdrawal amount is $35,000 and you can’t get more than that. Generally, you won’t be able to withdraw the money from group RRSP or locked in RRSP. Your contribution must be for at least 90 days in RRSP before you decide to withdraw for home buyer plan. You will need to complete form T1036 When you want to request withdrawal of funds for home buyers plan.

If we talk about the repayments, it will start the second year after you withdraw funds for home buyer plan. The applicants will get up to 15 years for the repayments of the amount. These are the complete details about home buyer plan that you should know before going for it.