# Need advice on cash downpayment vs HBP through RRSP



## trinity (Jun 24, 2009)

Hi all,

I am planning on buying my first home this year. I have saved up about $20k for a downpayment on a home sitting in a TFSA and online account. I met with a realtor who suggested that I put the $20k into an RRSP and use the first time home buyer's plan. I want to know if this is a good idea? I have nothing saved in my RRSP right now so I would have to postpone buying for 90 days. I don't know if it's worth it to get that (approximately?) $6k refund when I file next year since I'd have to repay it and get taxed later on during retirement. I have a great job and pensions (when I retire) actually are comparable to what I make now, so I'm afraid I'm not really saving anything in the long run.

Any advice would be appreciated.


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## iherald (Apr 18, 2009)

It depends if you have space to put the money into your RRSP. If you have a good pension, I believe (I don't have a pension so I don't know) you might take up your RSP space.

I guess I look at it and say if you get a 6K refund you only really have to repay 14k over a certain number of years. If I had space I'd likely do this, but it depends on your situation. 

If you end up with a 20k RRSP it won't make your break you, but ultimately you're getting 6k out of it now.


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