By Alim Dhanji, Assante Financial Managment
The RRSP home buyers’ plan allows you to withdraw up to $25,000 from your RRSP to buy or build a qualifying home for yourself (as a first time home buyer) or for a related disabled person. This withdrawal is made tax free! You may still be considered a first time home buyer even if you own a rental property or if you have not recently owned a home.
The RRSP home buyers’ plan works as a temporary loan to from your RRSP and has to be paid back within 15 years. You must pay back at least 1/15th of the amount withdrawn starting 2 years after the withdrawal is made. If the annual scheduled re-payment is not made then it is included as taxable income that year.
For more information on the pros and cons and details on how the RRSP home buyers plan works including CRA forms please contact Alim Dhanji.
Alim Dhanji is a Certified Financial Planner and has been helping people achieve their life goals including buying homes through written financial planning for over 10 years. Alim has been featured on CKNW, The Province, The National Post, Money Sense, The Metro, Investment Executive, Morningstar, and The Insurance Journal. For a free initial consult provided by Soho Properties, please call (604) 688-1919 ex 17.By Alim Dhanji, Friday, August 27th, 2010