Questions Regarding RRSPs Home Buyers' Plan (HBP)

[dasuperstar]

Hi Folks,

Getting serious in life here and wanted to buy a house. I stumble upon this
RRSP HBP program to help out in our down payment. My question is do
you need to have an RRSP account with a certain balance in order to do the
loan?

In the link below in the condition it doesn't say that you have to have a rrsp account with certain balance on it

Home Buyers' Plan (HBP)

Am I missing something?

Thanks

[SoNaRWaVe]

IIR, you don't need a minimum balance. You just need to have whatever you're going to take out of the RRSP, up to $25k max. And as mentioned in that link, you have 15 years to repay it back into the RRSP.

[4444]

U need to have had the money in a registered plan for 90 days (I think) before you buy.

On a side note, just because you're serious about someone, settling down, thinking kids, etc - what does that have to do with buying a place. Buying is a financial decision, I don't want to get into it, but:
http://www.revscene.net/forums/67470...te-bubble.html

Make sure you're educated before you buy, and don't let the banks, realtors, or global news educate you, they have a vested interest in you buying, I don't - my advice, if you want it, is free

Best of luck, either way

[sonick]

Originally Posted by Plush

My question is do
you need to have an RRSP account with a certain balance in order to do the
loan?

I am confused by this part of the question, what loan are you referring to?

Of course you'd need to have RRSP with funds to withdraw from to go towards the mortgage.

I am not quite sure you understand exactly what the HBP is and should read up on it. Apologies if I am misreading this.

[dasuperstar]

Thanks for the input guys.

I thought HBP is like a student loan or any loans that I could get it now and pay in x amount of time.

@sonick could you only withdraw the amount that you already contributed or could you max the 25k?

[dasuperstar]

Originally Posted by SoNaRWaVe

IIR, you don't need a minimum balance. You just need to have whatever you're going to take out of the RRSP, up to $25k max. And as mentioned in that link, you have 15 years to repay it back into the RRSP.

So you mean... for e.g. I got 5k in my rrsp I could withdrarw 25k max and pay in 15 years? Is it possible

[sonick]

Originally Posted by Plush

Thanks for the input guys.

I thought HBP is like a student loan or any loans that I could get it now and pay in x amount of time.

@sonick could you only withdraw the amount that you already contributed or could you max the 25k?

The HBP is not a loan. With the HBP you are withdrawing your own money which you have invested previously in your RRSP, but just allows you to do so without being taxed on it.

You can only withdraw as much as you have previously invested in the RRSP, up to a maximum of $25k.

The 15 year re-payment plan is basically re-paying yourself back into the RRSP you withdrew.

[cdizzle_996]

Be smart and dont waste your HBP on like $8000 like I did.

I wish I had used cash as my first down payment, and now that i've accumulated $25000+ in the last 3 years and want to buy a house, I have to come up with a cash downpayment.