tofu

Yes, you can buy foreign stocks, but every time you sell the $ is automatically converted back to CAD, so you lose at the minimum 2% spread every single time.

this is a common case but not for all.  more financial companies allow us currency in rrsp.  and i heard there is one, maybe two companies can keep foreign currencies in rrsp.  cra does allow foreign currencies in rrsp, but due to some technique issue, not many companies offer that.  for non-rrsp accounts, most companies offers usd & cad only.  so no big difference

tofu

26# fibbi


beside tsx or foreign, there are much more options for rrsp investment

fibbi

30# tofu
"先洗未來錢is more like you don't have money and you get a loan or credit card for a vacation.  and you need to repay it after the vacation.  after you 洗this 錢, you don't own this 錢anymore.
but in the rrsp case, you still own the money."

I guess we have different mindset. My point is as I get the loan this year, next year I don't have enough saving for RRSP. Then I get the loan = reducing my future RRSP purchase power. Yes I know the $ is still in "my" (rrsp) account,  but the point is I can't get enough $ for next year. I agree with "cow boy" that perhaps it's not the RRSP loan "先洗未來錢", it's the time when the $ is used somewhere else.

House is different. House could be necessity (if owning property is much more preferrable than renting). The mortgage $ I am paying I have to be comfortable with, it won't happen that I pay mortgage then I don't have enough $ in my account for food. But RRSP is around 20% of income and if pay in lump sum at the end of the year , it could be a lot. So it could happen that I don't really have that $ to buy RRSP.

Anyway, in your opinion, would you consider getting RRSP loan? Or just let the RRSP limit roll to next year? Just assume not in the highest tax bracket...

kingsway

I will say if after rrsp loan interest, there is still net tax savings, I would go for rrsp loan.

tofu

33# fibbi
now you are making all  the assumptions "if owning property is much more preferrable than renting). The mortgage $ I am paying I have to be comfortable withit won't happen that I pay mortgage then I don't have enough $ in my account for food"  of course, after the rrsp loan payment, you will have no money for food, who will get it.  not sure what you mean by owning is more preferable then renting,  if you just consider $, it is really rare case in big city.
if you think 20% of your income is alot, then house payment is even more, nowadays, house payment is average at 50%.  yes it is over the 40% rule.  also, we never said we need to max the rrsp contribution.  we are just discussing the use of rrsp loan.  
yes, we have different mindsets, since you have all the assumptions in your mind.
i never get a rrsp loan before, since i don't need to.  if it is benefit for me, i don't mind to get it.  refer to my previous post, to max the rrsp contribution or not, is mainly depend on what is your future plan and what is your prediction on tax rate. so my "yes", maybe is your "no"
maybe i am wrong, but you sound a little old school, "house is the #1 asset".  house is just same as stock, mutual fund &..., they are all assets which can increase/decrease in value.

fibbi

35# tofu


I can't afford a house... but I did have RRSP loan before and I don't want to do it again.

Regarding buying/renting...I just think it's not worth it pay rent. Pay rent and at the end you get nothing. Pay mortgage at the end you have the asset on hand. And there are not many cases the house price drop A LOT...actually...does it matter? if I only have one house and not planning to "flip".

tofu

i think we discussed buying/renting at another post already.  so not to repeat it.

"there are not many cases the house price drop A LOT...actually...does it matter?"
the min. downpayment is 5%, so if the price drops more than 5%, that house is "negative asset", a famous term from hk.  
does it matter?  yes, the financial institution can ask you to pay the difference or repay the mortgage right away.  although i haven't heard any case in canada yet,  but hk people should be familiar with it.
someone sold his house in 2007 for $2.6m, a year later the house was sold for $1.6m, but the same house was asking for $3m in 2009