Home Buyers’ Plan (HBP)
You can use the money accumulated in your RRSP towards a down payment for your home. You can borrow money for making an RRSP contribution which, along with the resultant tax refund, can be used for a down payment on your house.
Homeowners aged 55 and older are eligible. Up to 55% of the equity in your home (depending upon the age of the homeowner) may be available tax-free. It is an option that offers some unique opportunities to preserve your investments, make new investments to generate more income, and maybe even help reduce the taxes you pay.
Unlike secured lines of credit, conventional mortgages, or home equity loans, a Reverse Mortgage requires no repayment for as long as you live in your home. The loan is repaid from your estate, or by you if you decide to sell or move. The loan amount to be repaid is guaranteed not to exceed the fair market value of your home at the time it is sold, protecting the balance of your estate.
You retain complete control of your home with the freedom to move or sell at any time.
Proceeds from the reverse mortgage are tax-free, and make no difference to income-tested government benefits. This makes a Reverse Mortgage a tax-friendly alternative to taking extra RRIF withdrawals or cashing in non-registered investments.
Unleash the equity from your home to payoff other debts, invest in retirement or just have fun!
If you have built up enough equity in your property it may make sense for you to refinance in order that you can access the equity for any number of reasons such as investing, renovations, and paying off other higher interest rate debts. If you refinance your property for the purpose of investing, the interest you pay may be eligible for write off against investment income. It is best to talk to your tax advisor for more information on this topic.
Don’t get stuck with a higher rate than you deserve! Don’t do what most mortgagors do!
If your Mortgage is coming up for renewal don’t just sign the renewal form that is sent out to you and return it to your bank or mortgage company. The majority of mortgage holders, as amazing as it seems, do. This will result in a higher rate and inflexible mortgage product for your changing needs! The market is ever evolving with new and better mortgage products, and your best rate is secured through a mortgage broker like Buzz.
Another lender will typically offer you a better rate and no cost to switch. Buzz can also negotiate your way through with your existing lender if you want to break your term and renew at a lower rate. Start by letting Buzz know 30 to 60 days ahead of your renewal date. You will get locked in for the best rate on the market and lower if rates drop prior to your renewal date.
Buying a Home
Buying a home whether for your first time, second or third can be a stressful experience if you are not properly prepared and informed. Mortgage Logic will walk you completely through the process up front and make you aware of what you can expect.