This is another “bonus” for RRSP’s. I think I would definitely take advantage of it, if you have that much money saved up in your RRSP’s.
The Home Buyers Plan
The Canadian government recently up’d the amount from $20,000 withdrawal, to $25,000 this year (2009).
The main catch is that you have to be a first time homebuyer and that all the written agreements/ contracts are in place before you withdraw from your RRSP.
You don’t have to take it all out all at once, too. You can take some out first, and if you anticipate that you need more cash, you can take some out a few months down the road, as long as it’s all done within January of the following year of your home purchase.
Then you have to start repaying the money you withdrew. You would owe about 1/15 of that amount each year until you reach the 15th year. The catch is that the money you contribute back into your RRSP is not tax deductible.
Do you plan to utilize the Home Buyers Plan?
LLP: Life Long Learning Plan
I’ve always been a proponent of lifelong learning. The Canadian government seems like they are supportive too!
The LLP allows you to withdraw money from your RRSP for full time education that is an accredited post secondary educational institution.
You can take out a max of $10,000 per year, up to a max of $20,000 after four years of the first LLP withdrawl.
Then you have 10 years to pay the money back (like the HBP, you have to pay 1/10 of your RRSP back each year), but this starts after the 4th or 5th year from your first withdrawl for your RRSP’s.
Really detailed information on the LLP can be found here on the CRA website: