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Home Buyer Changes


Changes for home buyers will be in effect on Feb 15th, 2016. Dropping prices in Calgary’s housing sector and slowing sales may be a good idea to buy, these changes may effect your decision big time.

Who it will affect?

– People looking in the market place of 500,000 and 1,000,000, there will be a jump from 5% to 10% down payment for an insured mortgage

Home Buyers RRSP Program

– You can borrow against your RRSP and use the monies that you have invested in the RRSP as a loan to make a down payment on your home but need some requirements:

– Canadian resident – Have the intention to use this home as your principal residence – Be a first time home buyer in the eyes of this plan – meaning you and your current spouse have not owned a house in the last 5 years – Available to withdraw a maximum of $25,000 per person (up to $50,000 if you are married) – Need a written document to show the intent to purchase the property or under a contract to build

– From the time you withdraw the funds, you have until October the year following that in order to make the purchase or complete the build

Contributing Money to RRSP and Buying a Home

– You can still can get the RRSP reduction to save on taxes – The money needs to be in the RRSP for at least 90 days before you withdraw it for the Home Buyers Plan – When you withdraw it, the value of the plan has to be more than the withdrawal

The Next Steps

– Contact your financial institution, your RRSP advisor and fill out the part 1 of the T1036 and they will fill out the part 2 – you can be eligible to get the RRSP to be withdrawn without tax reductions – These taxes will need to be paid back for up to 15 years. Each year you will have to pay back a minimum of 1/15th of the amount – You can make an RRSP contribution to pay that back, but designate it as your Home Buyer’s repayment – If you don’t buy one, it gets included to your tax that year

For further information or questions, don’t hesitate to comment below or contact us personally. We’re here to help you the best that we can!

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