Interview with Steve Notis from Investors Group

[drbuddha]

remember if your mortgage is extended you are exxposed to more interest rate risk...

[misseconomiss]

Talk to a Financial Planner about it.

[investor1977]

I am.

[parkie96]

you can pull borrowed money out of an RRSP, especially under the HBP, however in order for it to be used under HBP it must be invested for at least 89 days. I am 100% certain of this

[investor1977]

I'm not sure abuout that one. I think under the Home buyers plan you would have to pay off the RRSP loan first.

[investor1977]

Not sure if the Home Buyers Plan allows you to take out your RRSP's until the loan is repayed. I would do another check on that one.

[MortgageMensch]

yes, you cash in the rrsp and repay the loan, that is the idea. the free money is the tax refund you get from the rrsp. it works.

[investor1977]

Only trouble is you loose your RRSP room, and drive up your taxable income. When you cash in your RRSP, that is now taxable income and you will owe on next yrs income tax. Possibly at a higher MTR then what you got the refund at originally.

[canfinplan]

this is not the case if RRSP withdrawal comes out as HBP.. use the refund as the downpayment after the 89 days later when the HBP withdrawal pays off the loan.. then 2 years after year of HBP withdrawal, assuming you borrowing 20K, you start paying back $111 per month

[investor1977]

@canfinplan Correct, it has to come out under the first time home buyer plan. Does this clip mention that, its been so long since I watched it I don't remember