Planning to buy your first home?
CRA will give you money to help buy a house!
When was the last time anybody else made you that offer?
For example, if you’re currently in a 30% marginal tax rate, $25,000 in RRSP savings could reduce your tax liability by $7,500, then the whole amount can be used towards your down payment.
This article from the Globe and Mail explains this great concept to save that down payment faster, using tax free savings through your RRSP, and the First Time Home Buyer Plan.
A similar concept is available for going back to post-secondary school too.
Repayment is required over 15 years, and there are some qualifying rules, but overall it can be a very powerful strategy.
As always, I’m happy to answer questions about your own taxes and finances, so feel free to call.