Construction Garceau

Financing Repayment GST/QST R.A.P. Good to know

The Plan of Home Buyers lets you use your RRSP to reduce your mortgage cost when you buy your new property. The HBP allows you to increase your down payment, lower your payments considerably periodicals as well as your interest costs.

Terms of HBP
To be eligible for the Program Home Buyers, you must not have owned property in the past five years.
You must repay at least 1/15ième the amount withdrawn during a period spanning at most, 15.

Limit of the PCR
The HBP allows a maximum of 20 000.00 per person based on opinion or federal contributions.

How the HBP works
The HBP allows you to use a substantial amount you have accumulated in an RRSP to increase your down payment to purchase your new property. With HBP, you can withdraw your RRSP without penalty. Repayment begins three years after the urchase of your property.
If you did not accumulated the 20 000.00$ eligible or if you do not have RRSPs, you can still access the HBP. Simply apply with your bank. A loan will then be transferred in trust and you will obtain an investment statement. After 90 days registered, you will be eligible to withdraw your RRSP and pay off your loan. You will then receive the same tax refund.

The example is based on an average tax rate to 35%

	RRSP contribution	Tax Refund
You	20 000.00 $	7 000.00 $
Your spouse	20 000.00 $	7 000.00 $
Total	40 000.00 $	14 000.00 $

Cost of your property	100 000.00 $
Downpayment	5 000.00 $
Downpayment Extra (tax refund)	14 000.00 $
Mortgage	81 000.00 $

How to get more information?
For more information, please contact us. It will be our great pleasure to inform you and guide you in your efforts.