First-time homebuyers tap your RRSP to help with your home purchase

Your thinking about buying your first home... Wish you had saved up a good down payment. Maybe you have, but don't know it. To help first-time buyers get into home ownership, the federal Home Buyers' Program lets you access tax-free money for use towards the purchase of your first home. 

As a first-time homebuyer, you are allowed to withdraw money tax-free from your RRSP, provided you adhere to the repayment plan. You can withdraw up to $25,000 from your plan. If your spouse qualifies as a first-time homebuyer, then he or she will also be able to withdraw $25,000. Between the two of you, you could possibly have a total down payment of $50,000. 

There are conditions, you must enter into a written agreement to buy before you can withdraw money. And, you must meet the repayment terms. Repayment begins the second year following the year of withdrawal. You have up to fifteen years to repay, and each annual repayment must be at least one-fifteenth of the total withdrawal, otherwise, you have to include each repayment amount as income for that year.

A detailed booklet is available on the Canada Revenue Agency website. 

Debunking the Myth: Why Calling the Listing Realtor Might Not Get You the Best Deal

When it comes to real estate, there's a common misconception that directly calling the listing realtor can fetch you a better deal. It sounds logical on the surface: eliminate the middleman, perhaps save on commissions, and directly negotiate. However, this strategy often fails to consider the intricate dynamics of real estate transactions and the primary role of a listing realtor.

The Loyalty of the Listing Realtor

The core responsibility of the listing realtor is to the seller. They're contracted to ensure the seller's best interests are always prioritized. Hence, expecting the same realtor to pivot and act in the best interest of the buyer is unrealistic. It's a clear conflict of interest. It's akin to expecting the same lawyer to represent both the prosecution and the defence in a courtroom. The dynamics don't align.

The Need for a Buyer's Realtor

Buyers benefit immensely from having a realtor dedicated solely to their interests. This agent can provide insights, point out potential issues with properties, and harness their experience to negotiate favourable terms. They're in the game for the buyer, advocating and working to ensure the buyer gets value for their money.

Seeing Beyond the Commission

It's a mistake to focus only on commission savings. Real estate transactions are multifaceted, involving more than just the exchange of money. There's the actual property value against the asking price, potential hidden faults, and other nuances that can be leveraged to negotiate the price. An experienced realtor provides value by navigating these complexities, often saving the buyer more than any commission they might hope to save.

The Perils of DIY in Real Estate

Some buyers might feel they have the acumen to navigate the real estate waters solo, assuming they'll outsmart the system. However, this is often a misguided belief. Just as we rely on professionals for haircuts, dental procedures, or medical diagnoses, the expertise of a realtor is invaluable. They bring market knowledge, negotiation skills, and a network of resources that the average buyer simply doesn't have access to.

Conclusion

In the world of real estate, professional guidance is not just an advantage—it's a necessity. To truly safeguard your interests and ensure you're making a sound investment, it's always best to have a dedicated professional on your side.