This article was originally published in the inFocus Summer
'14 Issue.
The Toronto real estate market continues to be one of the
fastest growing markets in North America. With low interest rates
and tremendous returns, our market has caught the eyes of many
foreign investors. Over the years, increasing demand has led to
increasing prices. Within this market, there is a buyer segment,
which is seemingly being squeezed out - young professionals wanting
to purchase their first home.
Below are various strategies and tax credits that decrease the
financial burden of purchasing a first home:
Home Buyer's Plan
The Home Buyer's Plan (HBP) is a Canadian Federal Government
Program allowing eligible first–time homebuyers to borrow up
to $25,000 from their Registered Retirement Savings Plans (RRSP)
for the purchase of their first home. If married, both spouses may
each withdraw these funds on a tax-free basis or possibly
tax-deferred basis for a total withdrawal of up to
