By: Javad Khan

Javad's Weekly Real Estate News Updates April 17th 2019

Tags: Weekly Real Estate News

 

 

 

Summary : Federal budget announced the amount that first-time home buyers can withdraw tax-free from their RRSP to buy a first home will be increased immediately to $35,000 from $25,000. ??
Federal Budget Increase
Announced
 
 
Earlier this month, the HBP got a new lease on life when the federal budget announced the amount that first-time home buyers can withdraw tax-free from their RRSP to buy a first home will be increased immediately to $35,000 from $25,000.
 
(The limit had not been adjusted for 10 years.) 
 
First-time home buyers purchasing a home jointly with a spouse or partner can now each withdraw up to $35,000 from their own RRSP under the HBP, for a total down payment of $70,000. As the budget stated, the increased limit is meant “to provide first-time home buyers with greater access to their RRSPs to purchase or build a home” and applies to HBP withdrawals made after March 19, 2019.  
The main benefit of an HBP withdrawal, of course, is the ability to withdraw up to $35,000 from your RRSP without having to pay tax on that withdrawal. This is different from regular RRSP withdrawals, which appear on a T4RSP slip and must be added to your income — and taxed at your marginal rate — in the year of withdrawal. Instead, the HBP withdrawals must be repaid over a 15-year period. Any amounts not repaid on time are included in your income and taxed at your marginal tax rate in the year of non-repayment.  
 
Real Estate prices are subject to increases in the long-term, get on board now !
 
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