Maximizing Your IRP Benefits

As a regular force member or a Class B/C reservist, when you are posted, you are entitled to a posting allowance that often includes a lucrative set of benefits known as the IRP (Integrated Relocation Program). A feature of the IRP is the mortgage interest rate buy down.

In general, the IRP program provides you with a bonus equal to approximately 1 month salary that can be used towards the reduction of mortgage interest costs tax free.

The one very important factor you should know about mortgage interest rate buy down plans is that not all plans are created equal. Some are better than others.

As a military personnel, you should expect to be offered the mortgage interest rate buy down plan that will most effectively utilize your IRP benefits. The mortgage plan should save you money for the entire duration of the mortgage, not just the first few years. You also want to ensure the savings from your mortgage interest rate buy down savings plan is permanent and not wiped out due to a relocation move at the next posting.

The savings from this benefit can be overwhelming if you do it right!