# Bought a house! Now what? RRSP's, HBP & Closing Costs Inquries



## jtc (Oct 1, 2011)

Hello everyone,

My wife and I just purchased a house in Milton that will be complete in Feb 2013. Just a few questions:

1) As I understand, we are each allotted an over contribution of up to 2k over our RRSP limit at any given time. As of right now, if our RRSP contribution room is approximately 19k and we both opt to put in an extra 2k(totaling 21k each), would we be allowed to use the full 42k toward the HBP? Or would we be limited to 38K?

2) As far as closing costs go, does anyone know if we'll be paying HST on top of some of the Land Transfer Tax. For example:

Land Transfer Tax([email protected]): 3,575 + HST? 


Any help would be greatly appreciated!


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## OptsyEagle (Nov 29, 2009)

In answer to your HBP and overcontribution, you are correct. As long as the money is in the RRSP 90 days before the closing of your house purchase, you can take it out under the HBP. The over-contribution will not be able to be deducted this year but will be available for deduction in future years.

I don't know the answer to your HST question. I would think the builder would build HST into the sale price but others would know better. Good luck with everything.


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## NotMe (Jan 10, 2011)

I'm 99% sure you don't pay HST on top of land transfer tax. But you will pay it for legal fees, etc.


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## canadianbanks (Jun 5, 2009)

In Toronto (416) the closing fees including lawyer fees, 2 land transfer taxes, etc. works out to around 3.5% of the purchase price. In Milton you have only the Ontario land transfer tax (lucky you), and I don't think you pay HST on it.


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## NotMe (Jan 10, 2011)

canadianbanks said:


> In Toronto (416) the closing fees including lawyer fees, 2 land transfer taxes, etc. works out to around 3.5% of the purchase price. In Milton you have only the Ontario land transfer tax (lucky you), and I don't think you pay HST on it.


Yeah, but you'd live in Milton.

just kidding.


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## jtc (Oct 1, 2011)

NotMe said:


> Yeah, but you'd live in Milton.


Burn! ;-]


Thanks for your help guys!


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