What is the home buyers plan and how does it work?
“This program is great if you have some money in your RRSP or if you did not own a house in the last 5 years. Even if you owned a house before and you have been renting for the last 5 years, you are considered (again) as a first time home buyer.
The main issues with this program are:
1. You have to return the funds within 15 years to your RRSP account
2. You are limited to 25K per spouse.
Actually your RRSP becomes the bank. If you do it smart and pay the bank’s mortgage first, you actually pay yourself and save thousands of dollars for your retirement. Of course you have to have something iin your RRSP to begin with…”