Yup, that’s right, I am now a home owner. After years of saving up I finally took the plunge into the world of home ownership. This is part of the reason why I have been a bit pre-occupied when it comes to blogging. Now that it is all said and done, I figure I will share some of my experience with the world.

In Canada, we use RRSP’s (Registered Retirement Savings Plan) to store away hard earn money tax free. RRSP’s are a fantastic way to put money away for retirement if you don’t have a company pension to count out. The Canadian Government allows individuals to use their RRSP’s one time tax free for their first home purchase up to a maximum of $20,000.

Now, I know this sounds great however there are some issues that I discovered in my process of becoming a home owner.

• Funds accessible in your RRSP need to be invested for longer than 90 days
• Employer contributions to RRSP funds might be excluded from the first time home purchase program
• You need to fill out the government Home Buyers’ Plan (HBP) Request to Withdraw From an RRSP also known as the T1036 form
• You have to re-pay your home purchase withdrawal back into your RRSPs over a 15 year period, however you won’t be able to get the tax saving benefit because you are replacing the money you have already not paid taxes on

Understandably, removing my savings from their safe home in RRSP’s could be risky. But, the current housing market in Canada is growing in leaps and bounds and the purchase should prove to be a great personal investment that I will benefit for years to come. The reason why I started My Retirement Project dot com was because I knew I would be removing a substantial portion of my retirement savings for my first time home purchase. I needed a way to re-inject funds and have fun and learn while doing it. Hopefully, I will be successful in replenishing my savings and more importantly I will be continuing on my goal of earning $1 million dollars to retire by the time I am 35!

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