Nearly every person would like to eventually purchase a home of their own. The benefits are significant; primarily the ability to live in a larger home without needing to pay rent. While there will still be expenses, owning a home is a great way to build equity as the mortgage is paid down. Some people also add value to their investment through sweat equity when they are able to do some remodeling on their own.
Most individuals plan to purchase a home as soon as possible, but they may find it difficult to set aside enough funds in savings for the required downpayment. Canadian residents searching for Toronto homes may be able to find they help they need through the Home Buyer’s Plan (HBP). The plan was government created to help prospective home buyers qualify for a mortgage With little or no funds of their own.
The Home Buyer's Plan allows interested parties to draw up to $25,000 from their Registered Retirement Saving’s Plan. Married couples qualifying for the program are each able to withdraw $25,000 for a total of $50,000. This amount allows for a substantial downpayment on Toronto homes located in the specified area.
Not everyone will qualify for this program since it is offered only to first-time home buyers, meaning neither the buyer or spouse owned a home and lived in it within the previous 5 years. A written agreement must also be made that states whether the home will be purchased or built.
Individuals who qualify for the funds must occupy the residence within a year. No taxes will be assessed against the money received if the funds are repaid into the Registered Retirement Saving’s Plan.
This innovative program allows young families and even singles to begin building a solid financial future. Realtors in the area should always promote this plan to clients who qualify.