As part of our commitment to being your primary source of financial information in Canada, we normally seek out questions on our social media sites. We are developing a list of questions called #socialFAQ's - where anyone can ask us anything [finance related] and we will respond with a video, podcast or blog post. Here is our latest installment.
Although the very straight forward answer to Rob's question is 'no', there is a depth to it I would like to address. The idea of 'programs for first time homebuyers' is one that comes up a lot. So I thought I would address Rob's question by including my previous recording on "Can I Refinance My Debt in a Mortgage Without Owning a Home?" while tackling what programs are available to first time home buyers.
So here we go, are there any mortgage programs available to consolidate debt into for first time home buyers?
As promised in the above video, here is a link to the post where I explain: Can I Refinance My Debt in a Mortgage Without Owning a Home? Or you can listen to the Soundcloud below!
So What is The Home Buyers Plan?
Basically the Home Buyers Plans allows first time homebuyers in Canada to withdraw their RRSPs tax-free to be used towards their downpayment. Funds have to be held in an individual RRSP (no group plans) for a period of greater than 90 days before use, homebuyers can access up to $25000 through the plan and all funds have to be repaid within 15 years.
Interestingly enough the Home Buyers Plan (HBP) came up in our very first installment of #socialFAQ as we discussed different downpayment options. Here are some references you can use to find our more about the home buyers plan.
- Let Your RRSPs Open The Door to Home Ownership With The Home Buyers Plan ( HBP)
- What Are My Downpayment Options? | Social FAQ | Video
Canada Revenue Agency | RC4135 Home Buyers' Plan (HBP)
Currently, The Home Buyers Plan is the only program available to first time home buyers to assist with the purchase of a property in Canada.
Social FAQ list
If you have found this helpful but want to know more about buying a home, consider checking out other questions that have been asked socially about finances in Canada. Also, if you have a question, don't be afraid to ask... that comment box down there is pretty social.
Required HBP Documents
If you are looking to access your RRSP funds through the Home Buyers Plan, here is the form that you will have to complete and provide to the institution that administers your RRSPs in order to request the funds.