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Old 2011-05-03, 08:43 AM
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Zorro Zorro is offline
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Join Date: Mar 2011
Location: Ottawa (Barrhaven)
Posts: 153
Default Hbp

Hi Dan,

I wanted to know if this was feasible. I read on-line that a few poeple did this but the articles are a couple years old and therefore am not sure if it's still possible.

My GF and myself want to take advantage of the HBP, but don't have any RRSPs. Our down-payment has as well been consummed as a deposit to the builder. Our plan was to make an RRSP loan from the bank, withdraw it under the HBP, repay the loan and receive the large tax refund (to use for closing costs).

I have proposed this to my bank and although they agree, they say that i must repay the loan BEFORE the withdrawal. Is the bank yanking my chain or is that a new rule?

(PS: i know that i will have to repay into my RRSP either by payment or by adding into taxable income)

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