Knowledge centre
The Home Buyers’ Plan currently permits an eligible person to withdraw up to $60,000 from their own RRSPs for a qualifying home. It is not free money: repayments normally run over 15 years, and CRA’s temporary relief changes the first repayment year for qualifying withdrawal dates.
An FHSA can combine a tax deduction for eligible contributions with a tax-free qualifying withdrawal. The first year’s participation room is $8,000 and the general lifetime limit is $40,000, but the account, contribution room, withdrawal conditions and closing timeline all need attention.
Yes, a qualifying first-time buyer can apply for a 30-year amortization on an insured mortgage. It can reduce the required payment, but it may increase total interest and it does not relax the lender’s income, credit, property or insurer review.
The statutory minimum is generally 5% on the first $500,000 and 10% on the portion above $500,000 when the purchase price is below $1.5 million. At $1.5 million or more, the stated minimum is 20%. A lender or insurer can still require more.
There is no single first-time-buyer test for every mortgage, tax and rebate program. A person can qualify under one program and fail another, so check the definition before counting the benefit in the purchase plan.