FAQ Vacation Home Buyers Plan (VHBP)

WHAT IS THE VACATION HOME BUYERS’ PLAN?

This program allows Canadians to use funds in their RRSP to finance the purchase of Vacation Homes. Our unique program is inspired by the hugely successful Home Buyers Plan (“HBP”) which allows Canadians to access funds in their RRSP for their first time home purchase in Canada.

HOW IS THIS PROGRAM QUALIFIED FOR RRSP’S UNDER THE TAX ACT?

Qualified Canadians transfer their current RRSP funds on a tax-free basis to a new RRSP. The new RRSP then invests the funds in a Canadian Mutual Fund Trust called the “SeaPort Vacation Fund Trust”. This Mutual Fund Trust is a qualified investment under the RRSP Tax Regulations.

WHAT IS THE BUSINESS OF THIS MUTUAL FUND TRUST?

The Trust engages in the business of making consumer loans to creditworthy Canadians to finance the purchase of both Vacation Memberships and Vacation Homes.

HOW DO I QUALIFY?

The VHBP program is open to all Canadians with a Registered Retirement Savings Plan account. If you do not have a RRSP, we can assist you to open a new one.

DOES THE VACATION HOME HAVE TO BE LOCATED IN CANADA?

No. The Vacation Home can be located anywhere in the world. Currently, SeaPort is offering the program for Canadians purchasing Vacation Homes in Mexico and the Caribbean.

IS THERE A MAXIMUM LIMIT TO HOW MUCH I CAN TRANSFER FROM MY RRSP FOR THE PLAN?

No. You are only limited by the funds available in your RRSP account.

WHAT IF I DON’T HAVE ENOUGH FUNDS IN MY RRSP?

Provided that you have available contribution room in your RRSP, you can make additional cash contributions and receive a 100% tax deduction.

WHAT ARE THE TAX IMPLICATIONS?

Provided you transfer your RRSP funds to another RRSP Trustee, the transfer will be tax-free. Like the RRSP Home Buyers Plan, you must repay your loan over up to 20 years time.

IS YOUR VHBP ASSOCIATED WITH OR PART OF THE OFFICIAL HOME BUYER’S PLAN ALREADY OFFERED IN CANADA FOR THE PURCHASE OF HOMES IN CANADA?

No. There is absolutely no connection with the official Home Buyers Plan in Canada. Our program is operated independently by SeaPort.

CAN I STILL MAKE FUTURE CONTRIBUTIONS TO MY RRSP?

Yes. The VHBP will not affect your current RRSP contribution room or the ability to make future contributions to your RRSP for other investments.

CAN THIS PROGRAM BE USED TO PURCHASE A RENTAL PROPERTY?

Yes. You are free to rent your Vacation Home to earn income. As a rental property, you may also be eligible for additional Canadian tax benefits with respect to your operating costs and interest payments. Consult your Canadian tax advisor for more information on this.