RRSP - Home Buyer's Plan

[Trying2save]

Any Canadians on the board that can offer me any advice to the RRSP Home Buyer's Plan?

I'm 27 and live at home, I'm saving as much as I can and debating if and when I move out if I want to buy or if I want to rent. I definitely am planning on moving out within the next 12 months so I think my best option is to rent. However, now I'm entertaining the idea of possibly using my RSP contributions towards my downpayment of my first home, the go'vt allows you to take out about 25K, without penalty with repaying it within the next 15 years.

Originally, I didn't want to go this route and wanted to save money on my own and leave my RSP's to grow without me touching them.. However, it's going to take FOREVER for me to get a downpayment outside of my RSP's. I currently have about 5k and that obviously won't help me out any.

Any advice?

[snafu]

Kudos to you for being smart enough to contribute to an RRSP. There are a lot of factors to consider when borrowing from your RRSP. How secure is your employment? What are the prospects for significant increases in income? Do you have a defined pension plan? Do you live in a high COLA? How long did it take you to save $ 5K? What can you do to increase income and increase savings? What is driving your desire to buy a home?

I can understand your desire to leave the family home however, the grass always looks greener on the other side of the fence. I suggest you try living on your own to experience being totally responsible, day-in-day-out for all your needs and care. It can be quite lonely. I figure that's what drives many 20-30's back to parental homes.

The research shows the costs of operating a home on your own is higher than rental in the current economy. You would need to furnish your digs and being house poor is very frustrating. You could start gently in a shared apt. and seriously save for a 20% DP. I know retirement seems a long way away but the sums contributed now and years of compounding are vital to your financial health.