Annual Real Estate Opportunity

It is that time of year that you can top up your RRSP with a contribution if you have some cash. The maximum benefit would be if you had some extra room on your RRSP contribution limit and could contribute $25,000. You may have this amount saved up for the downpayment on a property this spring. You make your RRSP contribution of $25,000 and get a substantial refund. If you are in a 40% tax bracket this would be $10,000. The goverment Home Buyers Plan allows first time buyers and buyers who have not owned a home in the last 5 years to withdraw up to $25,000 to purchase a property. The funds must be in the RRSP for 90 days before they can be withdrawn and the money must be repaid over the next 13 years.


If you with draw the $25,000 and add it to the refund of $10,000 you now have $35,000 towards the purchase of your home. The minimum you would repay annually would be $2000. In any year if you do not contribute the $2000 to your RRSP you must declare the $2000 as income for that year.

Need some more information and help with buying?  Call me at 604-466-4549


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