How Much Will Your RRSP Tax Savings Be?
How Much Will Your RRSP Tax Savings Be?
If you're a first-time buyer in Toronto, it's almost a given that you should use the Federal Government's Home Buyer's Plan to grow your down payment.
How else can you put money aside for your house or condo purchase and have the government give you back some cash for doing it?
Many people find it hard to save for their down payment but there are some easy ways to do it. First, let's get you motivated!
Go and use the RRSP Tax Savings Calculator which calculates how much your tax refund might be according to the info that you've inputed. The calculator is as straightforward as they get. Type in how much you made in the previous calendar year and then punch in a few different amounts of RRSP contributions.
The screen will give you a rough estimate of your tax refund, which is often in the 25% to 40% range. Put in $10,000 and get back, say $3,000.
Where else can you buy $10,000 for $7,000?
To find out how you can use your RRSP's down the road to help you purchase a home, read this article.
