If you’re ready to purchase your first home but you need a bit more money for the down payment, the Home Buyers’ Plan (HBP) allows you to withdraw money from your RRSP to finance the purchase of your first home.
The Tax-Free Savings Account (TSFA) is frequently recommended to young people as the savings vehicle of choice if they earn a low income at the start of their careers. As a result, these young people have a low deduction rate for an RRSP contribution, so it is better for them to contribute to a TFSA. Later, when they are earning more, it will be more advantageous for them to transfer the money from their TFSA to an RRSP.
But when it comes to buying a home, should these young people transfer the money they have accumulated in their TFSA to an RRSP and use the Home Buyers’ Plan (HBP) strategy? Continue reading →
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