What You Should Know before Browsing Oakville Houses for Sale
When it comes to buying a new home, everyone is looking for ways to increase their down-payment. After all, the higher your down-payment, the more you’ll save on monthly mortgage payments, as well as the cost of your home loan. Unfortunately, up until recently, many families struggled to come up with the money needed to secure these benefits. What if there was another way?
A New Way to Afford Your Home
Prospective homebuyers rejoice - there’s a new way to secure the home of your dreams from Oakville’s selection of houses for sale. The Home Buyer’s Plan (HBP) is a government program that allows homebuyers to withdraw up to $25,000 from their Registered Retirement Savings Plan (RRSP) to put towards buying or even building a new home.
How to Qualify
Before you can withdraw these funds from your retirement savings plan, you must enter into a written agreement that specifies whether you intend on buying or building your new home. You also must also agree to occupy your new home no later than a year after buying or building it.
To take advantage of this program, you must be considered a first-time homebuyer. Unfortunately, you will not qualify as a first-time homebuyer if you (or you and your spouse) have owned a home which you have occupied as your principal place of residence in the past five years.
How Much Can I Withdraw?
Once you meet the above conditions, both you and your spouse may withdraw up to $25,000 tax-free from your Registered Retirement Savings Plan for a new home. Couples, including common-law couples, may withdraw up to $50,000. Rest easy knowing that you won’t have to pay income taxes on these amounts as long as the funds will be repaid into a Registered Retirement Savings Plan in the future.
Benefits for Existing Homeowners
Another interesting trait of the Home Buyer’s Plan is that existing homeowners are sometimes eligible to withdraw funds. Here’s how it works:
Existing homeowners can use the Home Buyer’s Plan to purchase accessible homes or homes for disabled dependent relatives. The caveat is that the intended individual must qualify for the Disability Tax Credit (DTC), and this home must be more accessible or better-suited to the care of that individual.
If you’ve been looking for the perfect home for your disabled dependent relatives, look no further. The Home Buyer’s Plan makes it easy to help them move into a residence that is safer, more convenient, and more comfortable.
Find Out More
Are you interested in taking advantage of this exclusive offer for first-time homebuyers? Get more information when you reach out to me or my staff. We’re more than happy to answer any questions you may have, as well as assist you in finding your new home once you’re sure you qualify. Oakville houses for sale are out there waiting for you now!
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