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Saving for a down payment for a home can be a difficult challenge for first-time home buyers. Fortunately there are some government programs to help you save the funds for your home purchase.  

Home Buyer's Plan

The Government of Canada's Home Buyer's Plan allows qualified buyers to withdraw a maximum of $20,000 from their RRSP's to purchase or build a house. If your spouse is also eligible, you can each withdraw up to $20,000 towards the down payment, for a total of $40,000. No income tax is deducted from these funds, as long as they are repaid to your RRSP according to the government's repayment schedule.

How the Plan Works

You may participate in the plan if you (or your spouse) have not owned a home which you have occupied as your principal residence in the last 5 years.

Repayment Schedule

The money you withdraw from your RRSP must be repaid over a period of no more than 15years to retain its tax deferred status. Your repayment period starts the second year following the year you made your withdrawal. For example, in October 2003 you withdraw $15,000 from your RRSP to finance to purchase of your home. Your first annual repayment would be $1,000 and is dueby December 31st 2005.

For more information, Contact me.

Mortgage Insurance

CMHC & GE Capital make home ownershop a little easier by allowing buyers to put as little as 5% down. This means that GE or CMHC will insure the mortgage on your home (against default in payments) for up to 95% of the lending value of your home. This helps make home ownership a reality for many Canadians who can afford monthly mortgage payments but would have trouble saving for a larger down payment. The program is open to both new and repeat home buyers who buy a home in Canada and occupy it as a principal residence. Maximum house prices apply to loans greater than 90% of the value of the home.

The mortgage insurance premium is based on a sliding scale. The premiums can be added to the monthly mortgage payment.

Deferred Closing Costs Program for Home Buyers

The process of buying a home is exciting, but it can also be an overwhelming experience. When looking at your financial picture, consider options that offer flexibility at a time when you may need it most - consider First Canadian Title's Deferred Closing Costs Program.

With this program, you can defer a number of closing costs including:

• Land Transfer/Deed tax
• Legal Fees
• Disbursements
• Title Insurance premiums
• Registration costs and/or levies, if applicable
• Applicable Taxes

For a nominal administration fee, you can defer your closing costs for 6 months, interest free*.

For more information about Deferred Closing Costs Program, please contact First Canadian Title at 1-866-804-3122

*Upon approved credit

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