Canadian Home Mortgage Company Ltd.
Downtown Office:
Suite 700, Bow Valley Square II
205 - 5th Ave. S.W. Calgary, Alberta T2P 2V7
Northwest Office:
107 Hawkside Close N.W. Calgary, Alberta T3G 3K8
Phone:(403) 230-0320
Fax:(403) 230-0339
E-mail: bestrate@mortgagecalgary.com
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Amount
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Under this plan,
the maximum RRSP withdrawal is $20,000 for each
eligible person. That is, a home buyer and his/her
spouse may each withdraw up to $20,000 from their
respective RRSPs.
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Eligibility
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If you owned a home
and occupied it during the period beginning January
1, 2004 and ending 31 days prior to your withdrawal
in the year 2008, or if during this time period
your spouse owned a home that you occupied with
her/him, you cannot be considered a first-time
buyer. The withdrawal amount will not qualify
under the Home Buyers' Plan and you must include
the amount as taxable income.
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Location
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The home must be
located in Canada and you must occupy it as your
principal residence within one year following
its purchase
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Minimum
Waiting Period
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The RRSP contribution
must be made a minimum of 90 days before any
withdrawal is allowed.
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Payback
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RRSP funds withdrawn
for a first-time home purchase must be repaid
in equal annual installments over a 15-year period.
If more than the minimum amount is repaid during
a year, the annual amount to be repaid in subsequent
years is reduced. If less than the minimum is
repaid, the shortfall must be included in taxable
income in the year it occurs. You are allowed
2 years to make your first payment.
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Purchase
of Home in a Timely Manner
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For funds withdrawn
under the Home Buyers' Plan in a given year,
the home must be purchased before October 1 of
the following year.
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Residency
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You have to be a
resident of Canada in order to participate in
the Home Buyers' Plan.
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RRSP
Contribution Loan
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If a $13,500 loan
for a maximum RRSP contribution will lead to
a $6,750 tax refund, which you can use for the
downpayment provided the $13,500 loan is secured
by $6,750 of proven assets.
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Tax
Consequences
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RRSP funds withdrawn
as a downpayment under the Home Buyers' Plan
are not taxable. The Plan offers first time home
buyers benefits such as interest-free borrowing
of the downpayment. |
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