Laurentian Bank: Laurentian Bank of Canada.
Subject to credit approval. Certain conditions apply.
If you’ve been contributing to a Registered Retirement Savings Plan (RRSP), you likely have funds that you can withdraw to purchase a home under the HBP. Taking advantage of this plan is a great way to increase the amount of your down payment.
If you’re a first-time home buyer or you haven’t owned a home in the past 4 years.
Withdraw up to $35,000, or $70,000 per couple, tax-free from your RRSP to buy or build your home.
After the second year following your withdrawal, you need to start repaying at least 1/15th of the amount borrowed from your RRSP, until you’ve paid back the total amount over no more than 15 years.
Keep in mind that you must pay back at least 1/15th of the amount borrowed from your RRSP every year, and pay back the full amount in no more than 15 years.
By looking at your needs and your unused RRSP contributions, you can borrow the amount you need to maximize your withdrawal.
You can invest the borrowed amount in a Laurentian Bank RRSP.
After a minimum of 90 days, withdraw the amount from your RRSP under the HBP and repay your RRSP loan.
You now benefit from a tax deduction. You can use it to help cover expenses related to the purchase of your property, such as the down payment, notary fees, moving expenses, and so on.