Posted on: 22-09-06 08:58:13
Hi
I have a question on Home Buyer’s Plan
I bought a condo in February 2003, which is now sold and the deal closes on Nov 1, 2006. I have decided to rent an apartment for a year before buying a new place. My questions are:
-Can I take money out of my RRSP using the home buyer’s plan towards buying a place if I decide to wait till February 2008?
-How does the 5 year period calculated? Is it from Closing to closing? Or the date of signing the deal?
-What would be the investments that I should be considering to get the maximum growth considering my investment horizon is not much?
Any advice would be greatly appreciated.
Thanks
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Quote:
Originally posted by Timon
Hi
I have a question on Home Buyer’s Plan
I bought a condo in February 2003, which is now sold and the deal closes on Nov 1, 2006. I have decided to rent an apartment for a year before buying a new place. My questions are:
-Can I take money out of my RRSP using the home buyer’s plan towards buying a place if I decide to wait till February 2008?
-How does the 5 year period calculated? Is it from Closing to closing? Or the date of signing the deal?
-What would be the investments that I should be considering to get the maximum growth considering my investment horizon is not much?
Any advice would be greatly appreciated.
Thanks
T
For using HBP you will have to wait till Nov 2011 or later. This http://www.cra-arc.gc.ca/E/pub/tg/rc4135/README.html
will explain every thing about the HOME BUYER PLAN.
For any type of investment no advice can be given on the forum as there are so many factors involved like time horizon, your objectives and risk tolerance etc. and for that you should contact your financial consultant / planner who will advise you any thing only after getting to know you. If you do not have a financial planner, you can contact me and I can guide you accordingly.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by Timon
I have a question on Home Buyer’s Plan
I bought a condo in February 2003, which is now sold and the deal closes on Nov 1, 2006. I have decided to rent an apartment for a year before buying a new place. My questions are:
Can I take money out of my RRSP using the home buyer’s plan towards buying a place if I decide to wait till February 2008?
-T
Timon,
Home buyers plan is for first time buyers (Canadian residents) ONLY and and NOT for someone who has already bought and sold property. You might not qualify to withdraw any money for buying another home, within 1 year, using the home buyers plan. There are some EXCEPTIONS seen below.
You are not considered a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before your withdrawal, you or your spouse or common-law partner owned a home that you occupied as your principal place of residence. If at the time of the withdrawal you have a spouse or common-law partner, it is possible that only one of you will be considered a first-time home buyer .
There is one example given in the link that Pramod ji has posted, please visit that link and read more.
Regards,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Thanks Pramodji and Amit for your responses. I dont think I would qualify since my current condo is joinly owned by me and my wife.
I hope next year, the prices might go down a bit and I should be able to get a good deal.
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Quote:
Originally posted by amit kalia
Quote:
Originally posted by Timon
I have a question on Home Buyer’s Plan
I bought a condo in February 2003, which is now sold and the deal closes on Nov 1, 2006. I have decided to rent an apartment for a year before buying a new place. My questions are:
Can I take money out of my RRSP using the home buyer’s plan towards buying a place if I decide to wait till February 2008?
-T
Timon,
Home buyers plan is for first time buyers (Canadian residents) ONLY and and NOT for someone who has already bought and sold property. You might not qualify to withdraw any money for buying another home, within 1 year, using the home buyers plan. There are some EXCEPTIONS seen below.
Regards,
Amit ji,
I beg to differ here.
Even if you have owned a home and also participated in HBP, you can again make use of HBP subject to certain conditions which have been clearly explained in the link I provided earlier.
For this to happen, apart from the conditions mentioned by you, the person using the HBP must have paid his first HBP withdrawls completely the year before he wants to use the HBP again.
I am pasting some portion from the page 6 of the CRA home buyer plan guide from the link provided earlier.
Quote:
Your HBP balance on January 1 of the year of
the withdrawal has to be zero
If you have previously participated in the HBP, you may be
able to do so again if:
■ your HBP balance is zero on January 1 of the year during
which you plan on making another HBP withdrawal; and
■ you meet all the other HBP conditions that apply to your
situation.
Your HBP balance is zero when the total of your designated
HBP repayments and the amounts included in your income
(because they were not repaid to your RRSPs) in previous
years equals the total eligible withdrawals you received.
I hope it clarifies further.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks for more elaborate explanation. No doubts left now!
Cheers,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
