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It’s tax time and it was Benjamin Franklyn who said: "In this world nothing can be said to be certain, except death and taxes." We often think of taxation as a burden, as something that takes money from our pockets. There are however, a number of tax benefits, in the form of allowances and deductions. One term, which allows for tax benefits, is the Guaranteed Mortgage Savings Plan.

What is a Guaranteed Mortgage Savings Plan? It is a type of savings account offered by financial institutions, which allows a potential homeowner to save towards the deposit on a mortgage. One of the benefits of this type of account is that the prospective homeowner is guaranteed a tax credit of up to $6,000.00 annually.

What does this mean for you?

Building or buying your home is a large financial investment that demands significant resources. The Guaranteed Mortgage Savings Plan gives you the opportunity to start saving for this by putting funds aside for the deposit on your mortgage. Withdrawals are not allowed on the account until after an agreed upon maturity date and the funds must then be used exclusively for the deposit towards a mortgage. As a prospective homeowner, you benefit significantly because based on your salary you can decide how much you want to save towards that deposit. Thus, the strain of trying to obtain cash for your deposit when you are ready to build or buy is removed. Several financial institutions offer this type of mortgage savings plan such as Bank of Saint Lucia’s Home Start account. Contact Bank of Saint Lucia today at 456-6000 for details on how to open this account.