I’ve provided a video tutorial and a few written details below.

Call me once you’ve had a chance to watch. Deadline March 1, 2011

You may be surprised to know that you have unused RRSP contributions available that have carried forward for many years.

If you’re not sure how much you have available, take a look at the bottom of your Notice of Assessment that you received after filing last year’s tax return. It shows your current year’s maximum RSP contribution amount. If you have not received this notice or need to double check the amount, simply call Canada Revenue Agency (CRA). For service in English, call 1-800-959-8281. For French, call 1-800-959-7383.

This years deadline for RRSP contribution is March 1, 2011

Contributions to RRSPs are not taxable, which means any RRSP contributions you make up until March 1 will reduce the taxes you owe to the Canada Revenue Agency (CRA) for the 2010 tax year.

Make sure you call me to discuss how we can implement this strategy and save you thousands…

As you can see, there’s much more to mortgages than JUST rates.

Make sure you get The Right Advice at The Right Time

Mark Fidgett
604-273-2002
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com

604-273-2002

There are a few misconceptions surrounding RRSP’s as they relate to the home buying process that I’d like to put straight.

1) The first common misconception is:

“The RRSP MUST be used towards the Down Payment” = FALSE

You can use as much or as little as you like towards the down payment.

Now when I say as much, bare in mind that you can only withdraw up to a maximum of $25,000. If you’re married or buying with another first time buyer, they too can withdraw up to $25,000 for a total of $50,000

2) The second misconception out there is

“You’re ONLY eligible for this program as a FIRST TIME buyer.

False: Well, this is partly true.

For this program, the definition of First Time buyer is someone who has not owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal. To make it simple, haven’t owned 5 years prior.

As you can see from above in BOLD, “occupied as your principal place of residence”, in essence, you could own 3 rental properties and STILL QUALIFY for this program.

3) I have to start paying back the RRSP withdrawal RIGHT AWAY = FALSE

Your first repayment starts the second year following the year you made your withdrawals. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew, until the full amount is repaid to your RRSPs.

As you can see, there’s much more to a mortgage than JUST rates.

Make sure you get The Right Advice at The Right Time

Mark Fidgett
604-273-2002
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com

How does the Home Buyers Plan (HBP) work?

Each purchaser may withdraw up to $25,000 from their RRSP to buy or build a qualifying home. If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $25,000 to a combined maximum of: $50,000. You must be a resident of Canada; you may participate only once in your lifetime and must be considered a first time home buyer. You are considered a first time home buyer if you haven’t owned a home at any time during a specified period. Generally, a five year rule applies. The funds must have been in the RRSP for at least 90 days prior to withdrawal to be eligible under the program. Nothing beats the RRSP vehicle for 1st time buyer’s. The payback is over 15 years, with no interest expense, plus you received a tax deduction each year when making the original contributions. A simple and tax effective way to get your $50,000.00 down payment into the real estate market.

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

RRSP Home Buyers Plan

What is the HBP?

The RRSP Home Buyers Plan (“HBP”) is a federal government program that allows first time home buyers to currently withdraw up to $25,000.00 (the “Contribution”) from their RRSP to use in the purchase of their first home.

To qualify as a first time home buyer, the buyer may not have owned, or lived with a spouse or common law partner who owned, a principal residence beginning January 1st of the 4th year before withdrawal and ending 31 days before withdrawal.

How does it work?

A first time home buyer can withdraw up to $25,000.00 from his/her RRSP towards the purchase of a home. If the buyer is purchasing the home with a spouse who is also a first time home buyer, then they can both withdraw $25,000.00 each from their RRSP accounts.

Some conditions of the HBP:

• The buyer MUST be a first time home buyer and a resident of Canada at the time of withdrawal. The buyer MUST purchase or complete the build of the home before October 1st of the year following the withdrawal.

• Only RRSP contributions made 90 days before the withdrawal date may be used towards the Contribution.

• The buyer must intend to occupy the home as his/her principal place of residence no later than one year after buying or building it. Once he/she occupies the home, there is no minimum period of time in which he/she has to live there.

The buyer must repay the Contribution to his/her RRSP in annual installments equal to 1/15 of the Contribuiton amount, commencing the second tax year after the year of withdrawal and continuing thereafter for a period of fifteen years until the Contribution has been fully repaid to the buyer’s RRSP account. If the buyer does not repay the annual instalment in any given year, that amount due to be repaid will be added to the buyer’s income for the year and taxed as such.

Further information can be found on the CRA website here:

http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html