0% Interest Mortgage
If you are a first time home buyer then this may be worth a lot more than 2 minutes of your time!
With today’s low interest rate and stable economy, many first time home buyers are flocking to the market in search of their first dream home which may not have been possible a few years ago. With the incentive of the government’s First Time Home Buyer’s Plan, many dreams have become a reality. The plan allows first time homeowners to withdraw, without tax penalties, up to $20,000 per individual from their Registered Retirement Savings Plan (RRSP) and may use this sum towards any expenses in purchasing their first home including down-payment, legal fees, moving cost etc. After the withdrawal, each person will have up to 15 years to put the withdrawn money back into his or her RRSP account.
However, many first time home buyers are not able to take full advantage of this plan if they have little or no RRSP savings. That is why a virtual-loan concept was created to help these individuals to take full advantage of the government’s program even if they have little or no RRSP savings.
Here is how it works, we at Newbridge Mortgage will set up an RRSP account for you by extending a temporary loan for RRSP contribution to a maximum of $20,000 per individual without any credit or income qualifications. The account must remain for a minimum of 90 days to satisfy government guidelines, after which the loan will be cancelled without incurring any payments.
As a result of this arrangement, you will have the benefit of a tax deduction or refund deriving from the RRSP contribution. If you happen to be in the highest marginal tax bracket (46.4%) in Ontario, you may get a tax refund of up to $9,280.00.
If you and a significant other were both first time home buyers , this loan concept may potentially create an additional $18,560.00 of instant cash flow. You will have a maximum of 15 years to contribute the entire amount back with NO INTEREST expense. That is why we call this the 0% INTEREST LOAN CONCEPT.
To learn more about obtaining residential mortgage financing or to book a free consultation, please contact us and speak with one of our friendly and knowledgeable mortgage professionals.
