Introduced back in 1957, the RRSP is a retirement savings plan designed to help ease the tax burden on the first-time buyers in Canada. The first-time buyers in Canada needs to open an RRSP account, from which the first-time buyers in Canada can withdraw $35,000 as a down payment and your spouse can also receive this amount. The main thing to note is that this money is also repayable and needs to be repaid within 15 years.
Next, let’s take a look at who is eligible for this funding.
Eligible applicants need to be:
- A first-time home buyer in Canada or have not owned a home in the last 5 years.
- The first-time buyers in Canada should be a legal resident of Canada.
- The first-time buyers in Canada can purchasing a home that will be used as a residence, which they will live in for at least one year.
- The first-time buyers in Canada should repay the loan in full within 15 years, at the rate of at least one-fifteenth of the amount borrowed each year.
If the first-time buyers in Canada do not already have an RRSP Federal Home Buyers Plan account, the first-time buyers in Canada will need to open one 90 days prior to buying a home, as RRSP contributions require 90 days of savings before they can be used as a down payment.
For first-time buyers in Canada, understanding and taking advantage of these incentives can go some way to alleviating your financial stress. Especially for those buying a high value home, these policies will save you a significant amount of money. So let us briefly introduce you to some of the most sought after and high-quality condos in Canada, situated in downtown Toronto.
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