Comments on: Home Buyers Plan (HBP) http://canadianfinanceblog.com/2009/02/09/home-buyers-plan-hbp.htm The Canadian Source For Personal Finance Mon, 15 Mar 2010 13:13:51 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Chris Martin http://canadianfinanceblog.com/2009/02/09/home-buyers-plan-hbp.htm/comment-page-1#comment-4011 Chris Martin Sat, 06 Mar 2010 21:03:15 +0000 http://canadianfinanceblog.com/?p=50#comment-4011 Aha, I found it, thanks. Aha, I found it, thanks.

]]> By: Chris Martin http://canadianfinanceblog.com/2009/02/09/home-buyers-plan-hbp.htm/comment-page-1#comment-4010 Chris Martin Sat, 06 Mar 2010 20:58:54 +0000 http://canadianfinanceblog.com/?p=50#comment-4010 I can't seem to find evidence for the claim of the 89 day limit. Can you point me in the right direction please? I can’t seem to find evidence for the claim of the 89 day limit. Can you point me in the right direction please?

]]> By: Tom http://canadianfinanceblog.com/2009/02/09/home-buyers-plan-hbp.htm/comment-page-1#comment-973 Tom Sun, 23 Aug 2009 17:05:44 +0000 http://canadianfinanceblog.com/?p=50#comment-973 Imran, unfortunately you won't know until the 15 years have passed. On one side, you can get a mortgage for 5 years for less than 5%, but in 5-10 years from now the fixed rate could be 15%. If that were to happen, you'd be happy to have a smaller mortgage. With the investments in an RRSP, they might make 10% or more a year, making that the better choice. But it's also possible that they lose money within the 15 year span. I personally went with the HBP because it's a sure thing that I'm ahead but the extra interest I'm not paying on my mortgage. While the RRSP could do better than that interest rate, it can also do worse. More importantly, it helped me put together a 20% down payment, saving me the CMHC insurance you pay with a smaller down payment. If you want the most balanced way, maybe use the HBP but then increase your RRSPs contributions after that so that you're getting back in to the market sooner? Imran, unfortunately you won’t know until the 15 years have passed.

On one side, you can get a mortgage for 5 years for less than 5%, but in 5-10 years from now the fixed rate could be 15%. If that were to happen, you’d be happy to have a smaller mortgage.

With the investments in an RRSP, they might make 10% or more a year, making that the better choice. But it’s also possible that they lose money within the 15 year span.

I personally went with the HBP because it’s a sure thing that I’m ahead but the extra interest I’m not paying on my mortgage. While the RRSP could do better than that interest rate, it can also do worse. More importantly, it helped me put together a 20% down payment, saving me the CMHC insurance you pay with a smaller down payment.

If you want the most balanced way, maybe use the HBP but then increase your RRSPs contributions after that so that you’re getting back in to the market sooner?

]]> By: Imran http://canadianfinanceblog.com/2009/02/09/home-buyers-plan-hbp.htm/comment-page-1#comment-972 Imran Sun, 23 Aug 2009 05:28:03 +0000 http://canadianfinanceblog.com/?p=50#comment-972 Is the HBP always worth it to reduce my monthly mortgage or is the loss in growth for those 15 years not always make it worth it? How can I decide what's best for me? Is the HBP always worth it to reduce my monthly mortgage or is the loss in growth for those 15 years not always make it worth it? How can I decide what’s best for me?

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