Question about Home Buyer's Plan and House Closing Prior to 90 Days
Hello all,
I'm looking for some help in terms of figuring out whether I can do this, and if so, how.
The wife and I are looking to buy a home, as soon as within a week from today, or as late as a year from now. I've got about $30,000, $5,000 of which is in a TD RRSP. The rest is in a TFSA Savings Account and Regular Savings Account.
It is my intention to max out what I can use from the home buyer's plan, being $25,000. I want to deposit $20,000 in an RRSP savings account, and then 91 days later (because it needs to be in there for 90 days), take out that money tax free and put it towards my home, along with the $5,000 in my TD RRSP account. HOWEVER, the issue lies with the fact that whatever house we get will likely have a closing date LESS THAN 90 days from the date we sign the contract. The reason I haven't yet deposited the cash into the RRSP savings account is because I don't want to lock up the funds unless and until we have found the right home for us. Also, ever dollar I earn in my TFSA savings account is another dollar I can contribute to my RRSP savings account and is another dollar that my taxable income will be reduced by (I'm in the 3rd tax bracket).
Is it possible for me to buy a house tomorrow, immediately move $20,000 into my RRSP savings account (this will be at a bank other than where we get our mortgage from), use the $5,000 from my TD RRSP account and borrow $20,000 from a relative and put that $25,000 towards the down payment on the closing date in two months, and then after I move in and after the money has been in my RRSP savings account for 90 days (so one month later), fill out the home buyer's plan forms for those funds and get access to the money tax free and re-pay the $20,000 I previously borrowed from the relative?
Basically, I want to funnel this through the RRSP account so I can get a $7,200 tax refund in April next year, but I also want to be able to get access to that money for the house and not have it locked up if I can help it.
Anyone done something like this before? Is it possible?
The bank rep where we're getting our mortgage from said this is "not possible", but my impression of them is that they appear to know virtually nothing about their job, TFSA's, RRSP's, or personal finance in general (it is, frankly, extremely concerning). Furthermore, the bank where we're getting our mortgage from could not know whether the $20,000 I'm putting towards the house would be from a loan or gift from a relative, or from an RRSP account at another financial institution. The only flaw in my plan, at least as far as I can tell, is whether the CRA would allow me to withdraw the money from the RRSP without penalty for the home buyer's plan shortly after I move into the house. If so, then I think this plan is doable. If not, then I think I'm hooped. That's why I'm asking for your help.
Thanks in advance!
I'm looking for some help in terms of figuring out whether I can do this, and if so, how.
The wife and I are looking to buy a home, as soon as within a week from today, or as late as a year from now. I've got about $30,000, $5,000 of which is in a TD RRSP. The rest is in a TFSA Savings Account and Regular Savings Account.
It is my intention to max out what I can use from the home buyer's plan, being $25,000. I want to deposit $20,000 in an RRSP savings account, and then 91 days later (because it needs to be in there for 90 days), take out that money tax free and put it towards my home, along with the $5,000 in my TD RRSP account. HOWEVER, the issue lies with the fact that whatever house we get will likely have a closing date LESS THAN 90 days from the date we sign the contract. The reason I haven't yet deposited the cash into the RRSP savings account is because I don't want to lock up the funds unless and until we have found the right home for us. Also, ever dollar I earn in my TFSA savings account is another dollar I can contribute to my RRSP savings account and is another dollar that my taxable income will be reduced by (I'm in the 3rd tax bracket).
Is it possible for me to buy a house tomorrow, immediately move $20,000 into my RRSP savings account (this will be at a bank other than where we get our mortgage from), use the $5,000 from my TD RRSP account and borrow $20,000 from a relative and put that $25,000 towards the down payment on the closing date in two months, and then after I move in and after the money has been in my RRSP savings account for 90 days (so one month later), fill out the home buyer's plan forms for those funds and get access to the money tax free and re-pay the $20,000 I previously borrowed from the relative?
Basically, I want to funnel this through the RRSP account so I can get a $7,200 tax refund in April next year, but I also want to be able to get access to that money for the house and not have it locked up if I can help it.
Anyone done something like this before? Is it possible?
The bank rep where we're getting our mortgage from said this is "not possible", but my impression of them is that they appear to know virtually nothing about their job, TFSA's, RRSP's, or personal finance in general (it is, frankly, extremely concerning). Furthermore, the bank where we're getting our mortgage from could not know whether the $20,000 I'm putting towards the house would be from a loan or gift from a relative, or from an RRSP account at another financial institution. The only flaw in my plan, at least as far as I can tell, is whether the CRA would allow me to withdraw the money from the RRSP without penalty for the home buyer's plan shortly after I move into the house. If so, then I think this plan is doable. If not, then I think I'm hooped. That's why I'm asking for your help.
Thanks in advance!