yungfourfour

RRSP serves to give you tax break and retirement spending... I'd say "Maximize within limits", I won't suggest borrowing for it.

Assuming you contribute $2000 a year startint when you graduate (say 21 years old), 10% net annual return, and you stop contributing when you turn 28.  you'd get $664,000 at age 65

Assuming you start at 28 and you contribute until 65 (35 years), same rate of net return, at the age of 65 you'd only get $660,000.  SO START AS EARLY AS POSSIBLE.

and remember, when you withdrawl RRSP for first time home-buyer plan, the maximum is only $20000.  NEITHER YOU or your spouse can contribute to RRSP that year, and you have to repay it back to your account within 16 years (that repayment amount has no tax break... that considered as repayment. )If you miss a payment, the government treats that money as if you withdrawn it directly from RRSP and you have to pay tax on it too.  Big drawback in my opinion

yungfourfour

Oooh and 1 more thing
If your company do RRSP match, make good use of it.

say you are making $50K a year and they give you 5% match, you get $2500 from the company when you contribute $2500, That's $5000 in your retirement account a year

yungfourfour

you tried that before ?
or you repaid everything that year??

I found that from reference.

You le?