RSP loan...need some enlightenment please

[tamper]

Sounds good.

Make sure you pay the RSP loan within a year because...

in the future you will also need to repay the HBP as well. Your RSP contributions will go first to pay the 25k you take for your house. I don't think you have to repay anything in the year you buy the house, however If you don't repay the HPB loan you will have to pay income tax on the 25k you borrowed as the portion comes due each year.

Just check your budget going forward, once you have your own place the bills can start eating up those paycheques.

[dcaron9999]

I disagree 100%. If someone is in a high tax bracket and has lots of RRSP room, loans can make great sense.

... As long as you can pay back that loan within a year, before next taxation period.

[dcaron9999]

sounds good.

Make sure you pay the rsp loan within a year because...

In the future you will also need to repay the hbp as well. Your rsp contributions will go first to pay the 25k you take for your house. I don't think you have to repay anything in the year you buy the house, however if you don't repay the hpb loan you will have to pay income tax on the 25k you borrowed as the portion comes due each year.

Just check your budget going forward, once you have your own place the bills can start eating up those paycheques.

+1

[olddog]

thanks guys. am going to try to get a rsp loan for $9000 or $10000.

[olddog]

one more question guys...something am trying to understand.
say i need the funds in my rrsp that i have been saving for a home purchase (latest next march) for something urgent and i cash out the $15000 in my rrsp now and dont purchase a property this year but say i do between jan-march next year,does it still qualify and can i declare the $15000 as HBP?
am trying to avoid paying the tax charge if i cash out my rrsp funds. i will be putting down over $20000 when i actually purchase the property but i need this now as an emergency just came up.

thanks

olddog

[YYC27]

one more question guys...something am trying to understand.
say i need the funds in my rrsp that i have been saving for a home purchase (latest next march) for something urgent and i cash out the $15000 in my rrsp now and dont purchase a property this year but say i do between jan-march next year,does it still qualify and can i declare the $15000 as HBP?
am trying to avoid paying the tax charge if i cash out my rrsp funds. i will be putting down over $20000 when i actually purchase the property but i need this now as an emergency just came up.

thanks

olddog

You have to have a written agreement to purchase in place before requesting the HBP withdrawal.