Understanding the “Home Buyer’s Plan”

There's no doubt that saving up enough money to make a down payment on a home can be a tall task. That's why the Canadian government has introduced the Home Buyer's Plan (HBP), a smart way for young professionals to get the money needed to buy their first home.

Nearly all employees pay into a Registered Retirement Savings Plan (RRSP), and it's important to one's financial future to begin contributing to this tax-free account as soon as possible. For those having trouble coming up with a down payment, however, it can be difficult to choose between planning for the future and purchasing a house now.

The HBP offers the best of both worlds, according to Moneysense.ca. Buyers can contribute to their RRSP and get all the tax benefits that come with it. When they're ready, they can withdraw up to $25,000 in order to make a down payment on their house. The money must be paid back over 15 years, or it will be subject to tax. But really, the homebuyer is just paying themselves back over time, and still staying on-track for their retirement.

Many young people buying a home for the first time may not be able to afford a particularly large place, especially in hot real estate markets like Toronto. Fortunately, these homebuyers can supplement their home with cheap rates on self storage units. This way, the new homebuyer can make a reasonable down payment on an affordable mortgage, while still having room for all of their items.

Jiffy Self Storage, a leader in Toronto storage solutions, is currently running a contest on their website for a free iPad 3. Visitors to the site simply need to match a few Canadian landmarks and they'll be entered to win the iPad or one of several other prizes.