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Buying Your First Home In the Next Few Years: Saving For Your Down Payment

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Blog by Mary Roy | April 16th, 2013

If you are considering becoming a first time home buyer in the next few years below is some great advice from RBC. If you would like more information or to be connected with one of our amazing business associates to discuss mortage options and saving for your home and for some tips to get you started give Mary Roy & Team a call today at 905-426-7515. Fastest ways to save for your down payment: One great way is to make an RRSP part of your down payment saving strategy. It’s true - putting aside a small amount every week in an RRSP can help you build your down payment faster. A Registered Retirement Savings Plan (RRSP) can be used to help you save for more than just retirement. Through the Home Buyer’s Plan, you can borrow up to $25,000 from your RRSP to use as a down payment on your first home. How does The Home Buyer's Plan work? This federal program lets you borrow funds from your Registered Retirement Savings Plan (RRSP) to purchase your first home. Here’s how it works: You and your spouse can each withdraw up to $25,000 from your individual RRSPs to put towards a down payment You pay no interest on the money you borrow from your RRSP Your withdrawal is not taxable as long as you repay the money within a 15-year period (at least 1/15 of the funds must be repaid each year, beginning two years after the withdrawal). Your RBC advisor can help you figure out the easiest repayment strategy Start now and watch your savings grow. Even a small amount invested in an RRSP regularly (weekly, monthly, etc.), can grow into a large down payment over time. Start with $50 a week or another amount that fits your budget. $50 a week can grow to $14,761* in 5 years. Set it and Forget it Setting up regular automatic contributions every time you get paid is a great way to save – because it happens automatically you might not even notice it – except when you start to see your savings build! Tools like the RBC RSP-Matic® make setting this up easy. See the full article at:https://www.rbcadvicecentre.com/buy-your-first-home-with-some-help-from-your-rrsp