One of your clients is considering the withdrawal of a portion of his RRSP balance under the provisions of the Home Buyers' Plan. List and briefly explain any factors that should be considered before deciding to make this withdrawal.

Question

Quizplus · Accepted Answer

The Answer is The basic factors to consider would be as follows:
• Whether the required funds could be acquired through a conventional mortgage.
• What rate would be paid on conventional mortgage financing.
• What rate is being earned on the investments in the plan.
• The fact that the earnings lost while the funds are out of the plan can never be put back in the plan, resulting in a permanent loss of tax assisted savings.

One of Your Clients Is Considering the Withdrawal of a Portion