Personal Finance

Joint Mortgage (and Home Buyer Plan)

  • Last Updated:
  • Mar 1st, 2011 12:01 pm
Tags:
None
Deal Addict
Oct 12, 2006
2332 posts
710 upvotes
Alberta

Joint Mortgage (and Home Buyer Plan)

So a bit of a multi-layered question.

The plan is to buy a place with a friend for investment purposes with each of us putting 10% down.
He already has a place, but I do not. Both of us still living at home.

How would a joint mortgage work, and would I be able to use the First Time Home Buyer plan and pull my 10% from my RRSP?
I have enough for the 10% in my RRSP, but also have enough in my savings account. If I use the 10% from my savings, would I still be able to use the HBP later to get my own place?
4 replies
Deal Addict
User avatar
Apr 6, 2008
1613 posts
125 upvotes
Toronto
Chingyul wrote: So a bit of a multi-layered question.

The plan is to buy a place with a friend for investment purposes with each of us putting 10% down.
He already has a place, but I do not. Both of us still living at home.

How would a joint mortgage work, and would I be able to use the First Time Home Buyer plan and pull my 10% from my RRSP?
I have enough for the 10% in my RRSP, but also have enough in my savings account. If I use the 10% from my savings, would I still be able to use the HBP later to get my own place?

Home Buyer Plan allows you RRSP withdrawal only for Principal Homes and not houses for investment purpose.
Pramod Chopra
Mortgages and Investments
Deal Addict
Oct 12, 2006
2332 posts
710 upvotes
Alberta
So I couldn't use it for this opportunity, but if after I buy this, can I use it for my first PRIMARY home?
Deal Addict
User avatar
Apr 6, 2008
1613 posts
125 upvotes
Toronto
Chingyul wrote: So I couldn't use it for this opportunity, but if after I buy this, can I use it for my first PRIMARY home?
Yes.
Pramod Chopra
Mortgages and Investments
Sr. Member
Apr 23, 2009
901 posts
87 upvotes
Chingyul wrote: So a bit of a multi-layered question.

The plan is to buy a place with a friend for investment purposes with each of us putting 10% down.
He already has a place, but I do not. Both of us still living at home.

How would a joint mortgage work, and would I be able to use the First Time Home Buyer plan and pull my 10% from my RRSP?
I have enough for the 10% in my RRSP, but also have enough in my savings account. If I use the 10% from my savings, would I still be able to use the HBP later to get my own place?

Friends and money...baaaaad idea.

If you do go ahead with it though, you'll just have to get the mortgage in both people's names. I have mine in both my name and my girlfriend's name. We set up a joint checking account that the mortgage payments are withdrawn from when they are due. We just put in equal payments for each period.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)