You can withdraw up to $60,000 from your RRSP under the Home Buyers' Plan and an additional $40,000 from your First Home Savings Account, giving you a total of $100,000 in tax-free capital per person. These funds can be used for the down payment, land transfer tax, and closing costs.
Under CRA rules, you are considered a first-time buyer if you have not owned and lived in a home as your principal residence in the current calendar year or the previous four calendar years. If you sold a previous home, have been renting for four calendar years, and fully repaid your old Home Buyers' Plan, you can open a new FHSA and use the Home Buyers' Plan again.
First, your registered account must be administered by an approved trust company such as Olympia Trust or Canadian Western Trust. Second, the mortgage must be insured with CMHC or Sagen regardless of the loan-to-value or equity in the property. Third, you must qualify based on your income and credit because the mortgage insurer is involved.
Yes. You can combine funds from your RRSP, TFSA, and other registered accounts, including spousal accounts, to lend on a mortgage. You only need to open a self-directed registered account and transfer the funds without liquidating or triggering a tax event.
When you lend directly, you are on title and have direct control over the mortgage, but you must manage due diligence and understand your rank. When you invest in a fund, you buy units in a professionally managed vehicle, which offers diversification and lower minimum investments, but if the deal goes south you have very little control and must rely on the fund manager.
