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Originally Posted by hulkrogan
I did this for 20K and regretted it soon after. I got a significant pay raise soon after. Now this year if I put 10K in my RRSP a portion has to go to my repayment, which I get no tax benefit for. The tax benefit I stood to have now is much greater than when I was making less money. Oh well, you live you learn.
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Nothing wrong with that - you have to get the down payment somewhere. And as long as you have the RRSP Unused room, you may as well put you $ into the RRSP then pull it to buy your home. There is no law that says you have to claim the RRSP deduction when you buy it. If you know your income is about to jump into another bracket, carry an unclaimed amount forward until you need it.
Before I bought, I would put most of my savings into RRSP. As a result the only way I could come up with the down payment was the HBP.
If you have the money for the downpayment outside your RRSP and you can't put any more into your RRSP then you probably shouldn't use the HBP.