Sources of money for down payment

[cmontminy]

Does it make sense to withdrawal money from RRSP to use as a down payment?



This withdrawal would not be under the Home's Buyer's Plan as I already used it to purchase my 1st property.



I own two properties right now that are rented out; unfortunately with no cash flow and very little equity.



I need to come up with the down payment for a 3 property which would be my primary residence.



The only sources of money I can think of for this down payment are :



1- Sell my stocks from stock saving plan. Which I rather not as the stock price is very low at this moment.



2- Withdrawal from my RRSP and pay the income tax on it





Is there any other means of getting money for this down payment??



Thanks for your comments and help.

 

[2ndstory]

You could do it if you feel that the RRSP's are performing poorly, but like you mentioned, you will be taxed. Do you have equity in your 2 properties? If so, I would get a loan secured by one of them. Then you can claim the interest on that loan and get a tax deduction rather than have to pay more tax.



Nik

 

[Thomas Beyer]

Withdrawing RRSP $s will be taxed at your marginal rate. A possibility, but usually not too wise. Not buying a 3rd property and saving some more ought to be seriously considered !