You can withdraw RRSP money “tax free” as part of your down payment…..
Each purchaser may borrow up to $20,000 from their RRSP to use as a down payment.
Available to homebuyers that have not owned in the last 5 years or never owned.
Repayment of the funds to your RRSP must be made within a 15-year period, 15 annual installments is the usual practice.
If the amount is not repaid in a year, the year’s repayment amount will be added to your income and taxed.
$15,000 is borrowed for a down payment on December 31, 2007. The first $1,000 becomes due but is not paid. The borrower must declare the $1,000 as income in 2008.
The home must be located in Canada and is used as your principle residence.
This program may be used with the CMHC/GE 5% First Time Buyers program.
The program has been extended indefinitely.
Dominion Lending Centres Kelowna
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