Found 2 blog entries tagged as HBP.

Using Your RRSPs to Purchase a Home

When looking at purchasing or building a home, the biggest worry for buyer's is where to find the money for a down payment. A 20% down payment of the purchase price of the home is typically required. If 20% is not feasible, a 5% option is available. At 5%, you are required to have mortgage insurance through CMHC in order to qualify.

Regardless of the down payment percentage, the Government of Canada allows home buyers to use their RRSPs to purchase a home. There is no penalty for making this withdrawal. This government program is called Home Buyer’s Plan (HBP).

Before you make a withdrawal, the following conditions must be met:

1) You must be a resident of Canada.
2) The maximum amount for withdrawal is…

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Using Your RRSPs to Purchase a Home

When looking at purchasing a home, one thing that many people are concerned about is the ability to put a down payment on the property. A 20% down payment of the purchase price of the home is typically required. If a 20% down payment is not doable, then a 5% option is available. However, you are then required to have mortgage insurance through CMHC to be able to qualify for the mortgage.

Regardless if it is a 5% or 20% down payment, the government of Canada allows home buyers to use their RRSPs to purchase a home without a penalty for withdrawing the RRSPs. This is called Home Buyer’s Plan or HBP.

However, before you withdraw anything, the following conditions must be met:

The maximum amount you can withdraw…

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