real estate/down payment issue

[timdog]

hey guys, hoping maybe someone can help me with my predicament or has been through this before. currently i own a condo in mission. due to some personal reasons we need to move to a larger place, preferably a house or at minimum a townhouse. moving further out isn't an issue. affordability isn't the issue either. we have seen tons of places we're interested in online, well within our budget.
the problem is that, because of the recession, our condo value has gone down significantly. we bought near the high point (not quite, but close). so after realty fees, etc we would sell it and likely break even, more or less.
i have a bunch of money in RRSPs (much more than 5% downpayment) and maybe a few grand in other places.
the option CMHC gives you to use your rrsps for a downpayment (granted that you pay it back in X years) is the perfect option for us, however appears to be only available to first-time buyers. any possibility of getting around this? any other bright ideas on how to use my RRSPs tax-free?

[R-Audi]

Re: real estate/down payment issue

What about using a HELOC as a deposit and renting out the condo?

[Canadian Turbo]

Re: real estate/down payment issue

Pretty hard to get around the First Time Home Buyers plan, I assume you bought this place in both you and your wifes name? Perhaps borrow against your RRSPs instead of taking them out?

[RONDAL]

Re: real estate/down payment issue

as blair said if it was in both of your names you are slightly hooped. if it is in your name only your wife may be able to qualify as a first time buyer and use her RRSP's that way.

[R_Ethug]

Re: real estate/down payment issue

nope

when we built our new house.. my wife wanted to use her RRSPs too..

woulnd't let her/us.. because she was previously living with me who was a second time home buyer at that point it fell upon her that she was also a previous buyer even tho she wasn't on title or anything!!

pissed us off hardcore but we got it worked out in the end anyways with other funds..

[timdog]

Re: real estate/down payment issue

thanks for the ideas. we bought the current place in both names. HELOC obviously wont work since there is very little equity in the current condo. i guess i could look into borrowing against the RRSP but that would be no fun. If I were to pull out, say 20G out of RRSPs how much you figure I would have to pay in taxes?

[RONDAL]

Re: real estate/down payment issue

thanks for the ideas. we bought the current place in both names. HELOC obviously wont work since there is very little equity in the current condo. i guess i could look into borrowing against the RRSP but that would be no fun. If I were to pull out, say 20G out of RRSPs how much you figure I would have to pay in taxes?

i believe that would depend on your income bracket. as it would be taxed the same coming out as it otherwise would have had you not put it in there.

[timdog]

Re: real estate/down payment issue

why do first time buyer's get special treatment with the rrsp option? bastards.

[Duby T]

Re: real estate/down payment issue

Dude, don't even get me started. The whole building process is a *****. My builder and CMHC are making my life really stressful right now.

[Canadian Turbo]

Re: real estate/down payment issue

Try having your project go into receivership!

[Remedys]

Re: real estate/down payment issue

I think you can only do it once, but if I recall from all the reading I have been doing you can use it on your second home if it is within four years of buying your first.

[timdog]

Re: real estate/down payment issue

well, that would work in my case. that gives me a shred of hope, thanks.
i guess the next step would be to call up he CMHC.

[timdog]

Re: real estate/down payment issue

interesting... http://www.canadian-mortgages.com/mo...ome_loans3.htm

though revenue canada as opposed to CMHC, and it does mention the 4-year thing, although i can't make sense of it.

"You are not considered to be a first time homebuyer if, at any time during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal, you or your spouse owned a home that you occupied as your principal place of residence."

[timdog]

Re: real estate/down payment issue

i think that means no dice.

[Lars]

Re: real estate/down payment issue

i think that means no dice.

PM'd