Posted on February 16, 2021 in Uncategorised

It’s RRSP Season, Get Your Savings Working for you.

 

What is an RRSP?
“Registered Retirement Savings Plan.”
An RRSP is what’s called a tax-advantaged account, meaning that the
government created them specifically to provide tax breaks to those who
invest money in RRSPs as a way to motivate them to put away money for
their retirement.
Benefits of the Registered Retirement Savings Plan
Here’s how a tax-deferred account like an RRSP works. Let’s say you make
$70,000 a year and you decide to put the maximum allowable into your
RRSP—$12,600. When tax day comes around, the CRA will treat you as
though you earned just $57,400.
Can an RRSP be used to buy a house?
With the federal government’s Home Buyers’ Plan, you can use up to
$35,000 of your RRSP savings ($70,000 for a couple) to help finance your
down payment on a home.
To qualify, the RRSP funds you’re using must be on deposit for at least 90
days. You must also provide a signed agreement to buy or build a qualifying
home.

*Please note that there are lenders offering RRSP loans, but please
contact your financial planner for more information.