Q: My married daughter is 35; she sold her home eight years ago. Does she qualify for the Home Buyer’s Plan?

A: If your daughter is a first-time buyer and has funds in her RRSP she can take out $25,000 tax free and buy a residence with it.

This is a government-sponsored plan to stimulate home purchasing. She must be a first-time buyer. If she has not owned (she and her spouse) a home for five years, she qualifies again!

She and her spouse could both use their RRSPs. Maximum would be $50,000.

She must pay it back over 15 years to her RRSP. (1/15th per year! Or approx. $138.50 per month).

Your daughter also has to buy a property by Oct. 31 of the year when she takes the money out of the RRSP.

If she keeps up the payments back to her RRSP, everybody will be happy. If she does not … it will become taxable and added to income.

Ozzie Jurock is a senior real estate adviser at www.jurock.com. He can be reached by email at oz@ jurock.com.