Advice Regarding RRSPs and Your First Airdrie and Cochrane Home

The use of RRSP to purchase a home in Airdrie and Cochrane has been a popular topic of discussion. It is partially accurate that the RRSP can be used for a down payment, as the federal government has increased the limit from $25,000 to $35,000. However, this amount may not be sufficient to cover the full down payment, and other sources of funding may need to be considered, especially to avoid mortgage insurance.

There are restrictions on withdrawing from the RRSP for a home purchase. The funds must have been in the RRSP for at least 90 days, unless the first-time home buyer program was utilized. If the program was used previously, the funds must be repaid and left in the RRSP for at least 4 years. The withdrawn funds must only be used for the purchase of a primary residence.

The RRSP loan must be repaid within 15 years and an annual notice will be sent reporting the amount paid and due. Withdrawing from the RRSP for a home purchase is essentially borrowing from your retirement funds, and it may be better to consider alternative sources of funding. Contact Whalen Mortgages Airdrie and Cochrane to understand your options.

You Airdrie and Cochrane home ownership is possible, call your Airdrie and Cochrane Mortgage Broker Jodi and her highly experienced staff today 587-388-0926 .   You have 15 years to repay your RRSP ‘loan’, and payments must start two years after the initial home purchase.  Apply On-Line Today!   For more information about the HBP, visit Canada Revenue Agency’s website.