Advice Regarding RRSPs and Your First Medicine Hat Home
Many people say you can use the RRSP to pay for your new home purchase in Medicine Hat. This is partially true. The federal government raised the limit on what you can pull out to use as a down payment on your new home. It was 25,000 dollars, and it has been raised to 35,000. This is generally enough for a down payment, though you may have to raise money from other sources, especially if you want to avoid mortgage insurance.
There are many limits on the RRSP withdrawal. The money has to have been in the RRSP for at least ninety days, unless you took advantage of the RRSP. If you’ve taken advantage of the first-time home buyer program before, you have to repay the money and let it sit at least four years. Suppose there is no time limit. You have to use the money toward the purchase of a primary residence.
The RRSP loan must be repaid within fifteen years. You’ll get an annual notice reporting what you’ve paid and what is due until you’ve paid it off. You’re essentially borrowing against your retirement funds. And you may be better off raising money from other sources than tapping your RRSP. Talk to the mortgage experts with Whalen Mortgages to understand your options.
You Medicine Hat home ownership is possible, call your Medicine Hat Mortgage Broker Jodi and her highly experienced staff today 587-430-1555 . You have 15 years to repay your RRSP ‘loan’, and payments must start two years after the initial home purchase. Apply On-Line Today! For more information about the HBP, visit Canada Revenue Agency’s website.