Thread: Mortgage Advice
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Old 05-22-2009, 12:50 PM   #70
MJK
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Quote:
Originally Posted by pepper24 View Post
I'd be careful about using RRSP money. You get charged a withholding tax of a minimum of 10% for up to $4,999 and up to 30% for larger amounts and it'll count as income so you will most likely be paying tax on that portion as well.

Paying up to a 30% penalty to pay down a mortgage at historical low rates of under 5% doesn't seem like a good trade-off in my books.
Well I am thinking along the same lines as this BUT I would have to deal with higher CMHC fees if I make a smaller initial down payment. Is it worth it?
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