A lot of my clients, when buying a house for the first time ask me whether they can use the RRSP to pay the down –payment. The answer is yes, if you a first time home-buyer the federal government allows you to use up to 20,000 dollars from your RRSP.
However it is required that the contribution towards your RRSP should be in the account for not less than 90 days. You also need a signed agreement of sale and purchase to show the bank so they may release the money. Sometimes you do not have enough money contributed towards your RRSP, at this point you can ask your agent to try and negotiate the deal in a manner where the closing date could be more than 90 days.
So in the meantime you can put more of your savings in the RRSP account, let it sit there for ninety days and then use it. You will get 15 years to repay the RRSP amount that you have used. This is a good facility the government is providing and you should try and take advantage of that.
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