How Can I Save For My Downpayment?
For many first-time homebuyers, saving what's required for a downpayment can seem overwhelming. But sometimes saving for the downpayment can be as simple as managing your budget differently.
You can start saving for your downpayment:
- By setting aside money each month just as you would a regular monthly payment
- By opening a CIBC RRSP Regular Investment Plan to help you save tax free
- With a cash gift from a parent or relative
Let CIBC help you with a strategy to reach your goal of buying your first home faster.
Using your RRSPs to buy a home
If you qualify as a first-time homebuyer, you may be eligible for the government's Home Buyers' Plan (HBP). This allows you and your spouse or partner to withdraw up to $20,000 each from your Registered Retirement Saving Plans (RRSPs) to add to your downpayment or to cover purchase-related costs.
Best of all, you don't have to pay income tax on the funds, as long as you repay the total amount to your RRSP over the next 15 years. If the full $20,000 is withdrawn, the minimum annual repayment is just $1,333.
For more information on the Home Buyers' Plan, visit the Canada Revenue Agency.
1 To buy through Telephone Banking or online, you need to have a CIBC bank account or CIBC GIC already.
The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.
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