It is that time of year that you can top up your RRSP with a contribution if you have some cash. The maximum benefit would be if you had some extra room on your RRSP contribution limit and could contribute $25,000. You may have this amount saved up for the downpayment on a property this spring. You make your RRSP contribution of $25,000 and get a substantial refund. If you are in a 40% tax bracket this would be $10,000. The goverment Home Buyers Plan allows first time buyers and buyers who have not owned a home in the last 5 years to withdraw up to $25,000 to purchase a property. The funds must be in the RRSP for 90 days before they can be withdrawn and the money must be repaid over the next 13 years.
If you with draw the $25,000 and add it to the refund of $10,000 you now have $35,000 towards the purchase of your home. The minimum you would repay annually would be $2000. In any year if you do not contribute the $2000 to your RRSP you must declare the $2000 as income for that year.
Need some more information and help with buying? Call me at 604-466-4549
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.
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