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The Home Buyer's Plan allows you to remove funds from your RRSP in order to purchase a first home. If you are
married both you and your spouse may each contribute up to $20,000 from your RRSP's towards your purchase ($40,000
A first home means that neither of you can have been a home owner for the previous four years.
Revenue Canada has literally hundreds of pages that describe the home buyer's plan. Some of the more popular
pages are below:
You have 15 years to pay back the amounts to your RRSP. When you pay back your RRSP there is no additional deduction.
If you fail to make an RRSP payment the minimum re-payment amount will be added to your income.
Tax Planning Tip
During those years that your income may be lower (i.e. you have a child or you return to school) it may be more
advantagous to not repay your RRSP and take the tax hit. If you have an income of less than $4,000 it doesn't make
sense to pay back the RRSP.
Use this calculator to examine various "What-if" scenarios:
This calculator calculates U.S. and Canadian monthly mortgage payments based on principal, interest and term.
U.S. mortgages are compounded monthly while Canadian mortgages are compounded semi-annually.
Term (Years) =
Yearly Interest Rate (%) =
Principal Amount ($) =
Downpayment (%) =
Downpayment Required ($) =
Mortgage Principal ($) =
Monthly Payment ($) =
Still Owing at End of Term ($) =
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