How a mistake cost a first-time homebuyer $5,000
May 16, 2014
You may be familiar with Canada’s Home Buyers Plan, which allows first-time home buyers to withdraw up to $25,000 from their RRSPs to put towards a down payment. You have fifteen years to repay your RRSPs and you’re not taxed on your withdrawal – as long as you follow the rules.
One homebuyer learned the hard way. She withdrew $13,000 from two banks and is now facing a $5000 tax bill!
Here’s are two important things you need to know:
- You have to be a first time home buyer or close to it (click here for a full list of eligibility conditions)
- You have to fill out a T1036
You can access more information here
Was this homebuyer able to figure things out and not have to pay taxes on her withdrawal? Click here for the article from the Toronto Star to find out