Mortgagenomics Canada

The term “First Time Home Buyer” is thrown around often these days and is tagged in countless incentive based programs and policies. In the future I will dedicate an entire newsletter to the various First Time Home Buyer privileges and programs, but today I will talk about one in particular, the RRSP Homebuyer Plan.What is the RRSP Home Buyer Plan?The RRSP Home Buyer Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build a home for yourself or for a related person with a disability. Here are the 3 major features of the RRSP Home Buyer Plan:Access up to $35,000 of RRSP funds for the purchase of a homeTake as long as 15 years to pay it backIf you don’t repay the loan within the 15 year period, the full amount of the loan will be declared as income and you will be subject to tax at your marginal rateEligibility criteria for the RRSP Home Buyer Plan:You must be considered a first-time home bu