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.
Here’s what you need to know to take advantage of the HBP.[……]
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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?[……]