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I cover over 81 sq.miles to find you a home.
Coquitlam 58 sq. miles
Port Moody 9 sq.miles
Port Coquitlam 13 sq miles
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(604) 618-8108
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Vattoy's Views
RRSP and the Homebuyers
By Barrie Vattoy
604.421-1010
Prudential Sterling Realty
Email – barrie@vattoyviews.com
Web – http://www.vattoyviews.com
You know the old saying about not being able to have your cake and eat it too? Well, thanks to Canada Customs and Revenue Agency (CCRA) home buyers can achieve this impossibility - not with cake, but with their Registered Retirement Savings Plans (RRSPs).
Use the federal Home Buyers' Plan (HBP) and you won't have to cash-in your RRSP to purchase your new home. If you follow Plan rules, you may withdraw up to $20,000 to buy or build a home and still have your RRSP in tact. This means the withdrawal is not taxable and may be replaced later. Usually, any funds taken out of an RRSP become taxable income for that year and the "savings room" ceases to exist.
You will be giving yourself a no-interest mortgage which should be repaid within 17 years. The real cost of this money is the years of tax-deferred compound interest you will lose. Be careful to get all the facts so you don't get short changed. With the Home Buyers' Plan, details and exceptions
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