RSP's to help when buying your home

I had another good question about RSP's that I will share my answer with you.

Hi Mark

Hope you are good well i got an email from you concerning RSP. We told me that i can use the RSP to buy a home and pay in 15years. So i wanna know in 15 years how much should i need to pay? Is there any interest on that amount? Please let me know where can i got more informations if you dont have.

Hope to hear from you soon
Thanks
S.


Hi S.,

Yes, this is correct. You pay 1/15 per year starting after the first year you withdraw the money. There is no interest to be paid on the money, you just have to return the principal. You are allowed to pay more, but you must pay the minimum. I am not sure what happens if you miss a payment, maybe then you have to pay interest. Please contact your bank holding your RSP and they will know the full details.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate