| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 1022.1 | Home Buyer's Plan | CTHU26::S_BURRIDGE | | Wed Dec 18 1996 11:19 | 8 |
| 1022.2 | | CTHU22::M_MORIN | Mario Morin, Hull CSC - Canada | Wed Dec 18 1996 12:32 | 5 |
| 1022.3 | be a lender and a borrower | KAOFS::B_CROOK | Brian @KAO | Wed Dec 18 1996 15:44 | 3 |
| 1022.4 | weigh your options carefully | TROOA::BROOKS | | Thu Dec 19 1996 12:50 | 13 |
| 1022.5 | | KAOM25::HAKANSSON | Graham 8-621-4405 | Thu Dec 19 1996 14:55 | 4 |
| 1022.6 | Does this make any sense? | POLAR::MAHANEY | | Fri Dec 20 1996 06:09 | 13 |
| 1022.7 | | CTHU22::M_MORIN | Mario Morin, Hull CSC - Canada | Mon Dec 23 1996 15:40 | 15 |
| 1022.8 | | POLAR::RICHARDSON | Patented Problem Generator | Mon Dec 23 1996 16:03 | 1 |
| 1022.9 | Head spinning stoppers | POLAR::MAHANEY | | Thu Jan 02 1997 00:19 | 1 |
| 1022.10 | You are correct sir! | POLAR::MAHANEY | | Tue Jan 21 1997 23:31 | 10 |
| 1022.11 | RRSP Proceeds are taxable income... | CGOOA::OWONG | SKIWI in Canada (VAO) | Wed Jan 22 1997 13:37 | 8 |
| 1022.12 | Life can't be complicated at 17% | POLAR::MAHANEY | Mikey - Deliver us from evil! | Wed Jan 22 1997 23:31 | 7 |
| 1022.13 | | CTHU22::M_MORIN | Mario Morin, Hull CSC - Canada | Thu Jan 23 1997 14:26 | 27 |
| 1022.14 | Possible extra cost.. | POLAR::ROBINSONP | Waiting for the Sun | Fri Jan 24 1997 13:55 | 10 |
|
The bank will holdback tax on your RRSP withdrawal so until
your refund comes back you will experience a delay in
paying off your mortgage, which will cost you interest too.
Other gotchas??
Dunno..
/Pat
|
| 1022.15 | RRSP loans are usually at prime... | KAOFS::R_DAVEY | Robin Davey CSC/CTH dtn 772-7220 | Fri Jan 24 1997 19:37 | 10 |
| >The only drawback that I can see is that the loan rate for
>the money borrowed will be higher by a couple of percentage
>points that my mortgage rate.
Actually you'll probably save interest as most banks will give
RRSP loans at prime. Mortgage rates are rarely at prime or less.
Robin
|
| 1022.16 | | CTHU22::M_MORIN | Mario Morin, Hull CSC - Canada | Mon Jan 27 1997 11:09 | 10 |
| Spoke to a financial planner over the weekend.
Turns out the interest paid on a loan to buy an RRSP
is NOT tax deductible.
This pretty well shoots down this whole scheme.
Oh well...
/Mario
|
| 1022.17 | | POLAR::MAHANEY | Mikey - Deliver us from evil! | Mon Feb 03 1997 23:22 | 5 |
| I take it then that the loan interest deductions will only apply on regular
investments and not RRSPs?
Sean
|
| 1022.18 | Yup... | POLAR::ROBINSONP | Waiting for the Sun | Tue Feb 04 1997 09:59 | 7 |
|
Otherwise it is know as double-dipping (earning tax sheltered
income on one hand and claiming interest paid on the loan
on the other hand).
HTH
|
| 1022.19 | An excellent book on what you want to do | CGOOA::MCLEAN | | Tue Mar 04 1997 16:00 | 18 |
| Take a look at a book by Garth Turner on RRSP's. He has a section in it
detailing exactly what the original question is. The advantages to
using your money in an RRSP to pay off your mortage are as follows.
1. Once the plan is in place you pay back your RRSP at a competitive
interest rate (UP to 2% +\- going rates)
2. When making the payments back to your RRSP you can contribute beyond
your maximum for the year.
3. You can take out an investment loan on your home and invest it into
the mutual fund market and:
a. Deduct the interest paid on the load from your taxes
b. Use the capital gains and other tax perks to reduce the amount
of income you are making on the borrowed money to almost zero.
The only thing is you need enough cashable assetts in your RRSP to pay
off the mortage. Check out the book because he has some really good
points to look at in terms of RRSP's and finical planning in general.
|