# Can RRSP money be used as down payment if not 1st time home buyer?



## cappeld (Nov 10, 2009)

Hello,

I'm hoping someone can provide some insight into using rrsp money as a downpayment. We are considering moving a few years earlier than was initially planned based on the implications of the HST coming into effect in July 2010. 8% is a couple of years of Mortgage payments so we figured that we'd have a look and see what's out there. My question is - we don't have any money saved and, as we've only been in our curent home for 4 yrs, will have a good chunk of profit eaten up by closing costs & RE fees. Mu husband does however have a good amound of money in an RRSP that we could use is that possible or is this benefit only open to 1st time buyers? I used 5K of RRSP money when we bought our first house bu my husband never has. We were listed jointly as owners on our previous homes. Thanks for your help.

Thanks..D


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## Shayne (Apr 3, 2009)

Unfortunately the answer is no. If you were to sell your house and rent for 5 years you would both be eligible again.


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## HaroldCrump (Jun 10, 2009)

cappeld said:


> I used 5K of RRSP money when we bought our first house bu my husband never has. We were listed jointly as owners on our previous homes.


In that case you can't use the first time home buyer's plan.
You could always withdraw money from RRSP, may the tax and use it for home purchase.
You would permanently lose the contribution room.
In my mind, that's a desperate measure but ultimately your call.

Before you go down borrowing from your RRSP, take into account the situation that a couple years from now, home prices may be lower, even with the extra 8% HST.
Interest rates may be higher and the real estate madness may have cooled off and thus home prices may be lower.


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## OhGreatGuru (May 24, 2009)

Ont. is planning to exempt the first $400K of the house cost. Also, you need to look at your current mortgage payment schedule and claculate how much more equity you will have if you hang onto your current home for a while.


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## Nickyrash (Nov 11, 2009)

HaroldCrump said:


> In that case you can't use the first time home buyer's plan.
> You could always withdraw money from RRSP, may the tax and use it for home purchase.
> You would permanently lose the contribution room.
> In my mind, that's a desperate measure but ultimately your call.
> ...


Thnaks for sharing this


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