RRSP funds can help finance your first home
Posted by John Malloy on 02/12/2011
RRSP funds can literally be a “nest egg”: first-time home buyers can put up to $25,000 from RRSP accounts toward buying a home.
Dont let the word “retirement” in Registered Retirement Savings Plan RRSP fool you, according to Ontario Chartered Accountants the enormously popular RRSP can be the key to becoming a homeowner or, in bad times, keeping a roof over your head. Along with Tax-Free Savings Accounts, individuals have two excellent vehicles for saving money for unexpected events.
Use your RRSP to save for your first home
RRSP funds can be used to help finance a first home. “When buying your first home you can withdraw up to $25,000 from your RRSP. But youll need to have the $25,000 in your RRSP at least 90 days before making that withdrawal,” said Chartered Accountant Glenn Lott, Partner at Lott & Company, Chartered Accountants in Markham. If you would not have otherwise made a contribution and you have RRSP room, consider contributing the funds your have set aside for the purchase, wait at least 90 days and then make a Home Buyers plan withdrawal. This way, the funds youve saved for the purchase are still available, and you may have extra funds available due to the tax reduction.
via Lifestyle. Design. Inspiration. – Condo — Ontarios Condominium Magazine.
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