FYI
According to my banker, if one does not own a home for the last 5 yrs, you can take out from your RRSP for the down payment.
My agent says that if this is the first home, there is no land transfer fee (per Ontario province). I dont know much about this as I dont come under this benefit.
(please correct if my info is wrong for the benefit of CDs)
KM
Location: carl sagan's universe
Posted on: 11-05-09 20:37:03
From the above, I imagine you are not a first time home buyer and have not owned a home in the last 5 years.
In that case you are def eligible to use your RRSP to buy your home.
The max amount you can use per person on the title is $25,000.
However this has to be paid w/in 15 years starting 2 years after you redeem from your RRSP acc -so like you have 17 years to pay it back for all practical purposes.
You are right regarding home.
I need to take money out of RRSP for the downpayment. What would be the tax implications? I may take out abt $5k.
KM
Location: carl sagan's universe
Posted on: 12-05-09 14:37:52
Hi KumarM,
There are no tax implications as such.
If you take out 5K, under the home buyer's plan, there is no withholding tax and it is interest free.
Why not take out $25,000? And if you are buying it with your spouse, why not take out $50,000(the max allowable amount per person is $25,000).
Please note that the money has to be in your RRSP for a minimum of 90 days to be eligible for the home buyer's plan.
Quote:
Originally posted by KumarM
FYI
According to my banker, if one does not own a home for the last 5 yrs, you can take out from your RRSP for the down payment.
My agent says that if this is the first home, there is no land transfer fee (per Ontario province). I dont know much about this as I dont come under this benefit.
(please correct if my info is wrong for the benefit of CDs)
KM
For first time buyers in Ontario the land transfer tax rebate (LTT) is upto maximum amount of $2,000. You will pay the difference of LTT if your home is more than $227,500. Read about Land Transfer Tax Rebate: http://www.realestate-ontario.com/landtransfertax.htm
Take a look at some first time buyer's FAQs: http://www.realestate-ontario.com/firsttimebuyer.htm
Good luck with your home buying.
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According to my banker, as I dont come under home buyers plan, any money taken out of RRSP will have a witholding tax. It's 10% for less than $5k. The home buyers plan, as I understand, is for someone who did not own a home in the last 5 yrs.
Is my understanding corect?
KM
Quote:
Originally posted by KumarM
According to my banker, as I dont come under home buyers plan, any money taken out of RRSP will have a witholding tax. It's 10% for less than $5k. The home buyers plan, as I understand, is for someone who did not own a home in the last 5 yrs.
Is my understanding corect?
KM
I downloaded this .pdf couple of months ago. It has all basic information.
http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-08e.pdf" rel="nofollow">LINK
Good luck.
