|Q.||Are Ontario Savings Bonds eligible for registered savings plans?|
|A.||Yes. As noted in the Terms & Conditions, OSBs can be purchased and then placed into a self-directed Registered Savings Plan (e.g. Registered Retirement Savings Plan, Registered Education Savings Plan, Registered Retirement Income Fund, Differed Registered Savings Plan, etc.).|
|Q.||What are a bondholder's options when OSB RSPs mature?|
As each series of OSBs mature, a bondholder has three options:
Please note, in accordance with the Terms and Conditions of the OSB RSP, if notice is not provided before the Maturity Date of the bonds, the Trustee (i.e. Registrar) will reinvest the proceeds of the maturing OSBs in the new Variable-Rate Bond, if available.
|Q.||What is the scale for withholding tax applicable to withdrawing from an OSB RSP?|
The scale for withholding tax applicable to withdrawing from an OSB RSP is as follows:
|Q.||Can an OSB RSP be used as a down payment for a first time home purchase? If so, what is the procedure?|
Yes. An OSB RSP may be used as a down payment on a new home purchase. The bondholder must complete a Canada Revenue Agency T1036 form. The form can be obtained from a Financial Institution or a Canada Revenue Agency office. Processing of the T1036 form may take up to 10 days from the requested date.