Government incentive: HBP (Home buyer program!)
Over the years, the government has introduced incentives and programs to encourage first time home buyers to feel included when it comes to the opportunity of making such a big purchase for their family. It’s a buyers’ market and there are programs out there designed to make it possible to allow people to make a purchase for a home right for their family.
One such incentive is the HBP (Home Buyers’ Plan), that allows you to withdraw up to $25,000 in a calendar year, from your RRSPs (registered retirement savings plans). There are a few hoops to qualify for this program.
- You must be a first time home buyer or your spouse or common-law must be a first time home buyer. This allows flexibility for couples looking to purchase a home together.
- There are circumstances where people don’t count as first time home buyers, in cases like this a waiting period might be required such as four years.
- In most cases, people will have 15 years to pay back their RRSP used for their initial down payment.
- Each year the CRA will send you HBP statements with information such as the amount you have repaid, additional payments and the remaining balance ( a lot of this information is available online.)
Make sure to talk to your local mortgage broker or bank accountant about these details. Don’t forget to share this with your family and friends!