I would like some feedback concerning the possibility of using my RRSP or HELOC as down payment for purchasing a rental property.
My current RRSP is around 70K & my HELOC is 140K and I have probably 40K in my saving. I am looking to buy a property in range of 300 - 400K and already got preapproved as long I can come up with 20% downpayment at closing. So I am kind of short of 40K for downpayment. My current marginal income tax rate is at 36%.
I am looking for feedback from anybody who has tried this or may have consider this scheme but decided against it.
Should i withdraw the RRSP or HELOC for downpayment or is there a better way of doing it?
t-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #fafafa;" />
Thanks in advance for your input.
Cheers
My current RRSP is around 70K & my HELOC is 140K and I have probably 40K in my saving. I am looking to buy a property in range of 300 - 400K and already got preapproved as long I can come up with 20% downpayment at closing. So I am kind of short of 40K for downpayment. My current marginal income tax rate is at 36%.
I am looking for feedback from anybody who has tried this or may have consider this scheme but decided against it.
Should i withdraw the RRSP or HELOC for downpayment or is there a better way of doing it?
t-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #fafafa;" />
Thanks in advance for your input.
Cheers