The Home Buyers’ Plan (HBP) is a government program which allows first-time home buyers like you to gain financial autonomy. You can become happy homeowners while at the same time building a retirement fund within a Registered Retirement Savings Plan (RRSP).
Is the HBP Right for Me?
Of course! And what’s more, while you’re fulfilling your dream of owning a home, you’ll also be getting income tax refunds worth thousands of dollars. For spouses who work, these refunds can be between $14,250 and $24,100, which is quite sufficient to purchase your first home. The HBP allows each taxpayer to withdraw up to $25,000, tax-free, from their Registered Retirement Savings Plan (RRSP) to purchase a home.
But I’ve Never Contributed to an RRSP…
It doesn’t matter. You can still take advantage of the HBP, as long as you are earning, or have earned in the past, an income entitling you to contribute to an RRSP. By contributing the maximum possible amount to your RRSP, you’ll receive generous income tax refunds.
But I Don’t Have Enough Money to Contribute to an RRSP…
It’s easy to contribute up to $25,000 to your RRSP, because allowable unused contributions since 1991 can be fully used and deductible. Also, if you take out a 90-day loan from your financial institution, and pay it back immediately after the 90-day period using money withdraw from your RRSP, you will legally obtain your income tax deduction. Afterwards, you will have almost 18 years to reinvest the money in your RRSP, without interest. It’s a simple strategy with fabulous results!
Still Have Some Doubts?
“Our experience over the past year has shown us that the HBP is a wonderful tool to help you purchase your first home.”
“We never imagined we’d be able to buy a home. But we were curious about the HBP program, and to our great surprise, each of us was eligible for a $25,000 income tax deduction under the program. We bought a nice bungalow for $328,000.”
Mr. Jean-François Therrien and Christine Cholette
“This program gave us the double benefit of purchasing a revenue property, and having our little family live in the building as well. The HBP also allowed us to make a 25% down payment on our triplex.”
Mr. Luc Janson and Magali Jodoin and their son Charles David