Using Equity to Save for Retirement
The other day, my financial planner gave me a call to see what I wanted to do about purchasing RRSPs before the March 1 deadline. We discussed the usual options: setting up a pre-authorized payment plan and/or taking out a loan and then repaying it with my tax return. But as we got talking, she also mentioned something that I hadn’t considered – borrowing equity from my house to use as financing for my RRSP payments.
While I’m not sure that it’s the right option for me to take, there are people for whom it makes sense. As with any plan, it’s good to weigh the pros and cons by discussing it with a financial professional.
