Thread: RRSP Loan?
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Old 03-03-2016, 08:38 AM   #8
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Originally Posted by rubecube View Post
Okay that makes a bit more sense, and you're right about the other credits. I also have credits from previous years that I can carry forward, and I'm likely going to get a refund in the $2k range, which I would rather put towards paying off my student loans than taking on more debt. The RRSP loan seems like a better idea to do next year when I'm making more money.
In your early years of earnings a TFSA might make more sense then an RRSP. If you are in a lower bracket of income then you think you would be in when you retire or you plan on using the money for a downpayment on a house you are better of paying the tax now and waiting until you are in a higher bracket to use your RRSP contribution room.

If you pull money out of your RRSP to buy a house you pay it back with after tax dollars of your 30-40 income instead of paying with after tax dollars of your 20-30 income.

Also you would have to run the numbers but I'm not sure perpetually taking RRSP loans and paying them off over the next 12 months is better or worse than skipping 1 year of contributions and just putting in money over the next 12 months. I think the banks make money with both hands here on the interest and on the fund sales.
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