For many first-time homebuyers, the question of how to come up with a downpayment can be worrisome. But many could actually be saving for this amount without even realizing it.
The Canada Revenue Agency has a program to help potential homeowners with a downpayment. The Home Buyers Plan (HBP) allows participants to withdraw up to $20,000 in a calendar year from their registered retirement savings plans (RRSPs) to buy or build a qualifying home. The advantage of such a program is that it allows first-time homebuyers to build a down payment without the trouble or stress of borrowing the amount. Participants of this program have up to 15 years to repay the RRSP balance without a penalty.
"The Home Buyers Plan is a great way to leverage your retirement money today, and still grow your RRSP tax-free. It's a double win," said Tim Shwed, a CIBC Mortgage Specialist.
Along with the HBP, first-time homebuyers can take advantage of mortgage options that can help make monthly bills more manageable. Financial institutions such as CIBC are now offering extended amortization periods and minimal down payment programs to help increase the affordability of home ownership. This provides a great opportunity for first-time buyers to purchase their first home sooner.
For more information on CIBC mortgages, visit your nearest CIBC branch, call 1 800 465-CIBC (2422) or visit www.cibc.com/mortgages.
Credit: www.newscanada.com