When purchasing CEDIF securities your money is invested for five years.
You can withdraw you money before five years but will have to repay a prorated portion of the 35% non-refundable provincial tax credit to the province of Nova Scotia. New Dawn has a 100% redemption rate – all investor requests for redemptions at five years have been met.
After five years you will be given the option to roll-over your investment for another five years, if the CEDIF meets certain conditions, or redeem your investment.
Investments rolled-over (reinvested) after five years qualify for an additional 20% non-refundable provincial tax credit. After ten years investments qualify for a further 10% non-refundable provincial tax credit, again, if the CEDIF meets certain conditions. On an investment of $1,000 this means an added $300 tax credit or a total of $650 in tax credits on a $1,000 investment over fifteen years.
If you have placed your CEDIF in a self-directed RRSP account it will be subject to the same withdrawal policies and penalties as all other RRSPs.