How quickly should I pay back my Home Buyers’ Plan?
For many Canadians, a home may be the biggest purchase of their lives and the federal Home Buyers’ Plan is a valuable tool that can help make this huge financial milestone more attainable. However, once you have a hole in your RSP savings the size of a house, you may be wondering what will be the best strategy for paying this money back: Do you throw everything you’ve got at it to pay back the loan quickly? Or would it make more sense to repay gradually, freeing up more money for new RSP contributions — and the tax deductions that come with them?