Home Buyer`s Plan Eligibility?

[JCRE]

If I have never owned a home but decide the first property I buy is going to be investment property will that have any affect on my status as a first time home buyer as far a the Home Buyer`s Plan is concerned?

From my understanding, since I don`t intend to live there I can`t use the Home Buyer`s Plan, but will I still qualify for the Home Buyer`s Plan withdrawal to purchase my principal residence a year or so later?

Hope that question makes sense!

 

[MikeMcCrae]

As far as I know the plan you are talking about is thru CCRA and only applies to borrowing your own RRSP funds for a down payment. It only applies to owner occupied first purchases. My advise is read Thomas`s post on your other thread.

 

[PeterKinchMortgageTeam]

QUOTE (JCRE @ Jan 29 2008, 09:22 AM) If I have never owned a home but decide the first property I buy is going to be investment property will that have any affect on my status as a first time home buyer as far a the Home Buyer`s Plan is concerned?

From my understanding, since I don`t intend to live there I can`t use the Home Buyer`s Plan, but will I still qualify for the Home Buyer`s Plan withdrawal to purchase my principal residence a year or so later?

Hope that question makes sense!

If your question has to do with the property purchase tax (and your exemption as a homebuyer) its not applicable in all provinces but if you are in BC and purchase any property, it will affect you. You will not be able to claim the exemption on your principal residence.

I believe that you will also be affected under the RRSP home buyer plan as you cannot own or have owned a property in the previous 5 years (I believe) but you will want to double check with your bank or RRSP administrator.

Hope that helps,

 

[fyim]

The condition for qualifying for the Home Buyer`s Plan is that you "neither owned a home as your principal place of residence during the period beginning four calendar years before the year of the withdrawal and ending 31 days prior to your withdrawal, nor your spouse or common-law partner owned a home during the same period (and you lived with your spouse or common-law partner during that period)".

I deal with taxation and estate planning in my current full-time job and we get that question all the time.

Here`s a link to a bulletin that explains the federal program:

http://www.aimtrimark.com/publicPortal/Sho...TBHBUY//eBinary

Regards,

Frank