Did you know you can use your RSP’s as a down payment to purchase a home?  

Here’s the details…

• It allows you to withdraw up to $25,000 from your RRSP’s to buy or build a qualifying home (you may not be allowed to use locked in RRSP’s)

• Each applicant can withdraw up to $25,000

• The RRSP issuer will not withhold tax on these amounts

• Withdrawals are to be repaid over 15 years

• You are not considered a first time home buyer if you have owned a home that you have occupied as your principal place of residence

• Funds must be in your RRSP for at least 92 days

• You can participate in the HBP more than once if any and all previous RRSP withdrawals are repaid in full.

Do I meet the HBP eligibility conditions?

• You must be considered a first-time home buyer.
• You must have a written agreement to buy or build a qualifying home for yourself.

Or

• You must have a written agreement to buy or build a qualifying home for a related person with a disability, or to help a related person with a disability buy or build a qualifying home (obtaining a pre-approved mortgage does not satisfy this condition).

• You must intend to occupy in the qualifying home as your principal place of residence within one year after buying or building it. If you buy or build a qualifying home for a related person with a disability, or help a related person with a disability buy or build a qualifying home, you must intend that that person occupies the qualifying home as his or her principal place of residence.

In all cases, if you have previously participated in the HBP, you may be able to do so again if your repayable HBP balance on January 1st of the year of the withdrawal is zero and you meet all the other HBP eligibility conditions.

Still struggling to save for that down payment? There’s still options to buy a home without a down payment. Must have strong credit and income, so if you do and you want to explore options…contact me, we have a program for that

Curious about the Vancouver housing market stats?  Check out the link from our very own economist Dr. Sherry Cooper.  She discusses the Vancouver real estate stats as well as the new budget announced by the BC government on Tuesday. 

Click Here to Read Full Article

The BC Minister of Finance has announced several changes to the Property Transfer Tax program, effective Wednesday, February 17, 2016, which include:

1. a property transfer tax exemption for Canadian citizens and permanent residents who purchase newly-built homes, condos and townhouses under $750,000. Purchasers must live in the property for at least one year. This is a potential savings in closing costs of up to $13,000;
2. a one percent increase in property transfer tax to three percent for homes which are sold over the $2 million mark;
3. the first time home buyers exemption will remain in place for homes under $475,000;
4. buyers will need to start disclosing their country of residence in all property transactions;
5. the beneficial ownership of properties held by corporations will also be tracked.