Home Buyer Plan RRSP Withdrawal Limit Increase!

SUMMARY

The 2009 Federal Budget introduced the following changes affecting Retirement Savings Plans (RSP):

• The Home Buyers’ Plan (HBP) maximum withdrawal limit has been increased to $25,000 from $20,000 for withdrawals made after January 27, 2009.

ADDITIONAL INFORMATION

How much can I withdraw from my RRSP under the HBP?

For withdrawals made after January 27, 2009, the maximum amount that you can withdraw from your RRSP to purchase or build a qualifying home without having to pay tax on the withdrawal is $25,000.

If I withdrew $20,000 from my RRSP under the HBP after December 31, 2008, but on or before January 27, 2009, can I withdraw an additional $5,000 from my RRSP?

Yes, you can withdraw additional funds, as long as the total of all your withdrawals does not exceed the new maximum amount of $25,000. However, under existing requirements, neither you nor your spouse or common-law partner can own the qualifying home for more than 30 days before making the final withdrawal.

Scotiabank offers a 10 year Fixed Rate Mortgage Special

Scotiabank offers a 10 year Fixed Rate Mortgage Special

Vancouver, Mar 6, 2009 (My Mortgage BC) -- -- Scotiabank today announced a reduction to 5.25 per cent from 7.15 per cent in the interest rate for the Bank's 10-year fixed rate, closed term mortgage. The pricing change - effective today - gives homeowners an opportunity to benefit from historically low interest rates.

"This is the perfect solution for customers who are looking for long-term interest rate comfort," said Charles Lambert, Managing Director, Mortgages, Scotiabank. "Prudent customers can now complement their borrowing strategies with plans to be mortgage free within 10 years."

Scotiabank, which offers a full suite of competitive mortgage products, including the popular Scotia Total Equity Plan (STEP), also announced a rate reduction to 3.25 per cent from 5.25 per cent for the Bank's Save Now, Save Later product, a one-year fixed rate, closed term mortgage.

Scotiabank's new 10-year offer reflects the Canada Mortgage and Housing Corporation's (CMHC's) recent expansion of the Canada Mortgage Bonds Program. CMHC introduced the Canada Mortgage Bonds (CMB) program in 2001. It was expanded to include 10-year CMBs in July 2008. The program's objective is to benefit homebuyers and the housing industry by improving access to lower-cost mortgages.

If you are interested in obtaining more information on Scotiabanks 10 year fixed rate mortgage special please don't hesitate to contact me. If you would like to learn more about me and my services please visit Dominion Lending Centres