Have you been thinking about using the HBP (Home Buyers’ Plan) to help finance the purchase of your home? Think about the TFSA, too.

• The Home Buyers’ Plan (HBP) allows you to dip into your RRSP to finance the purchase of a first home. But the conditions are somewhat limiting, since you have a maximum of only 15 years to repay your RRSP (starting in the second year after your withdrawal). The thing is, you aren’t really withdrawing money from your RRSP to buy your home. Instead, you are borrowing from your RRSP, and you have to repay it because the end use of your RRSP is still to provide you with retirement income. As well, the HBP was only designed to help in the purchase of a first home.
• The TFSA, on the other hand, is not linked to any specific use. Withdrawals from your TFSA come with no strings attached: you can use the money for anything you want, including the purchase of a home, regardless of whether it’s your first, your second, or... What’s more, even though the withdrawal will free up an equivalent amount of contribution room for the next year, you are under no obligation to repay your TFSA.
• With the TFSA, you now have one more option for financing your purchase. Remember, however, that a TFSA contribution does not give you any tax savings, while an RRSP contribution is fully tax deductible.

For more information or to open your FÉRIQUE TFSA:
Use our toll-free line from wherever you are, with no waiting, 8:00 a.m. to 8:00 p.m., Monday to Friday.

1 800 291-0337

You can also reach us by e-mail at: service.ferique@bnc.ca

www.ferique.com