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How does the RRSP Home Buyers’ Plan work? hen the Finance Minister ‘N’ delivered his latest budget, he made some rather radi- cal changes to the Home Buyers’ Plan. Under the 01d plan, which expired on march 1, 1994, any home buyer could withdraw up to $20,000 from his RRSP to purchase a home. Rules were included to keep persons from contributing to their RRSP for the sole purpose of taking the funds back out under the Plan. These rules basically meant that a purchaser could not get a deduction for contri- butions made in the year he pur- JOHNSTON DANIEL UNIITED- HALTOR V 'WTO/ERIMTHSQE tate si ep ri ht tntown, llsn pecca Baa}? ho e 40 ew tennIs court wit screens, etc 579,0 0. EDNAMPG" 8446061 $19 ,000. Lots for our mop l3- bdrm, 50” lot mg; Rlvgrk'tls Oalsh Sc’hoo. garage on ANNE-USP 844-6061 VAlUEPlUSEASTOAlMLlE $359K. Executive hoEn te hwi/ min floor n conce ptI miy room, InIshe asement, qurletstr eet P. WW1 GENFAMD’HOMEEAST $325, 000.V pacious 4-bdrm ms r em ltgutéééiinrfiféflefi‘f’b’fi? Iugiii? BRENDAIEWELL" 844-6061 MLUON DOUARVIEWS 0 Q EaSthh/ille Iakefronls 0 Exclusive with private riparian rights plans forrenoralion . 6 bdrms, 5 baths, weII built - 2 storey, finished on 3 levelswilh 9 walkout. CLAUDETI’E SMITH“ 8446061/825-2522 Asewiceofllre Oakville, Milton andDrLsm'ctRealEstateBoard chased a home. Under the new Home Buyers’ pLan introduced in the recent budget, only first time home buyers can with- draw money from an RRSP to pur- chase a home. First time home buy- ers are defined as those persons who have not owned a home in the five years preceding the purchase. The plan allows purchasers to withdraw up to $20,000 from their RRSP for the purchase of ahome. The money must be repaid to the RRSP in instal- ments over 15 years. The first instal- ment for a purchaser buying in 1994 would be due by the end of 1996. Any shortfall in repayment would be included in the person’s income in 1996. The most important distinction between the old plan and and the plan introduced recently is with respect to deduction rules. Under the JOHNSTON DANIEL LIMITED REALTOR 299 Lakeshore Road East. Oakville - 844-6061 746 2494: e at Ul’lPS wel maIntaIP drm unga 0w near new r00 kleg hts. mwmab: £575,000. Prime location Ekay [”ng CQMRYUVBG $309,0 0 Terrific fam my home set on 1/ acre 0 pm gar an close to a amenitIes Move-in con gitron. W FAVOINI'Ell III °.°,°I.III IIIIWIIIII .IIIII maprleSt p'Ine 0a fooran§,y4-pce‘o’ensuite8 MAWBM-éafl Walk to cute 9%mlovg1urgaallgw Erér 59, .035 ood|,foors new SIdIng SlBAN WEN-6061 $269, 900. Absolutely charming home located in Old Oakville. Featuring gorgeous property (80’ x 210’), master bed- room with sundeck, recreation room with fireplace sliding doors to rear garden pool, + nanny suite with renovated bath- room and Jacuzzi DGQHNECLASS $399,000 or $2, ass/m. Luxurious townhome, stun In u master surtes , Iacu’zzi, pro ttfibfigbaco'nies BEV ELLIS" W1M5-2388 2%? 199,000301 4,95/mo. astePrimae end unit afu rIng aster I surte, lugarage, innliedm nanny suite, Cell» BEV EUJS" M1B45-2388 new plan, a person can get a deduc- tion for contributions made at least 90 days before withdrawal. This .means that the purchasers can now make a contribution to their RRSP, . with the sole intention of purchasing a home, and not suffer any negative tax consequences. The time is definitely ripe for first time home buyers to enter the mar- ket. With the % per cent down pay- ment program and the modified RRSP home purchase program, there are more government incentives to (See 'Tax‘ page 6.) JOHNSTON DANIEL UMlTED- REALTOR V HOMERJS$ESS$399,(m Arare 0p ortUI for you to go to 1work yet never eave |orn ,,Flowntownio parlang spaces, olveye enced garden. ElNA KEG 844â€"6151B45%17b464-7358 LUXUWUW‘KS $164,900 3- bd home In do trown locaflon. Walkout 0m ground doof famI y room. Great for is tIme buyers. SUSANFIM844-6061 PlCilRElSDECEMNG $199,900 La snethral e ri c a decor walk toga kg lbrgp lerrpgergs rElot, nice area. Please call BEHYIaG-MPEILE‘M1W 305 DOUGASAVENJE 319, .A is” to W20 com <plete farR rREIDyEyISIo 18%) riggt car garage, supe sp Ital,s private sl.ot PORDO'BHEN‘" 844-6061 alk t0 SENSNIONALLAIGHDNT 54,2 eOfO/mo. Gorgeous exec tiye home, amil room se rate m r m, arge gourmet kItchen ,psauperb mstsr3 sfille.’ WNW/ELL“ W1 #55; '03 very 'A’epsaupeM 'Je/Ieag ‘a/Il/weo ecu :eieisg may â€" e