Saving for a down payment for a home can be a difficult challenge for first-time home buyers. Fortunately, there are a variety of government programs to help you save the funds for your home purchase. A real estate professional can help you understand how these government programs work.
The Government of Canada’s Home Buyers' Plan allows qualified buyers to withdraw a maximum of $20,000 from their RRSPs to purchase or build a house. If your spouse is also eligible, you can each withdraw up to $20,000 towards the down payment, for a total of $40,000. No income tax is deducted from these funds, as long as they are repaid to the RRSP according to the government's repayment schedule.
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