Step 1: Check to see if you fit all the Home
Buyers' Plan (HBP) requirements at www.cra-arc.gc.ca/hbp/. If you do continue to the next step.
Step
2: Consult with Kathleen Dediluke of Dominion Lending Centres Mortgage
Integrity Mortgage BC to review your credit and plan ahead so you are mortgage
ready. Kathleen will help you figure out what you qualify for as well as help
you navigate all the first-time home buyer programs such as the new BC Home Owners Mortgage and Equity Program.
Step 3: Contribute to your RRSP to top it up
to $25,000 (check your contribution room to confirm the
maximum you can contribute) for each buyer. Contribute
to the highest income earners RRSP first to maximize your tax refund. If you don't have the cash to contribute, then it may be beneficial
to borrow funds to contribute to your RRSP but talk to your mortgage broker
first to ensure your credit is in line to do so.
Step 4: Do your
taxes as soon as possible so you can get your tax refund in your bank account.
Step 5: If you
didn't maximize your RRSP to $25,000 put your tax refund into your RRSP (highest income earner first) to help
reduce your taxes next year.
Step 6: Now that
your funds are in your accounts
review your options with Kathleen and let your RRSP contributions stay in your account for 90 days for the
withdrawal to qualify under the HBP.
Step 7: Begin
searching for your first home. Be sure to plan the closing date to be after the minimum 90 days required for the
funds to be in your RRSP and allow time for funds to transfer out of your
account.
Important 2017 Dates:
March
1 - the 2016 RRSP Contribution Deadline
February
20 - the first day you can file your 2016 income taxes
May
1 - the deadline to file your taxes if you are not self-employed
April
30 - all income taxes must be paid to CRA by all tax payers
June
15 - the deadline to file if you are self-employed
Good to Knows about the Home Buyers' Plan:
- Funds withdrawn from your RRSP before they have been in your account for 90 days are not eligible under the HBP and income tax will be withheld from the withdrawal
- You can use your RRSP withdrawal for anything from you down payment, paying off debts, moving costs and more as long as you're in a contract to purchase your first home
- You must repay the withdrawal amount over 15 years starting the second year following your withdrawal or pay tax on 1/15th of the amount withdrawn in tax years you do not pay it back.
Dominion Lending Centres Mortgage Professional
Kathleen Dediluke will help you plan to buy your first home. It’s never too
early to start your mortgage application. E-mail Kathleen to get started today!
