In this weeks episode of Wealthy Choices, Steve N Tyler talk about the first time home buyers plan being increased to 35K.
What is the first time home buyers plan? It’s a plan that allows you to take money from your RSP to fund the purchase of your first home. Pretty great right? Saving for your first down payment can be a hard process. The home buyers plan makes that process a little easier. The Home Buyers plan allows you to use $35,000 of your RRSP savings to help with the downpayment on your first home. Thats $70,000 for a couple. Pretty awesome stuff.
Of course like any government plan, there are some rules in place to make sure you qualify. First, the funds have to be in your RSP savings for 90 days. If you and your partner are looking at purchasing a home, you should really deposit your funds to ensure you can take advantage of the plan. Second, YOU HAVE TO PAY IT BACK! Well… Pay yourself back. Technically this is money you are saving for your retirement… That’s what RSP’s are. (Retirement Savings Plan). What happens if you don’t pay yourself back? After the first year, the amount gets added to your income, so you have a higher taxable income.
If you have questions, your accountant or tax preparer will surely have the answers. The team at The Tax Force is always here to help!
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