Home Buyer's Plan Analysis

	A	B	C	D	F	G	H	I	J	K	L
1	This sheet analyzes the choice of using the RRSP home buyer's plan (HBP) versus other options for funds when buying a home. It is a companion to the blog post at:
2	https://holypotato.net/?p=2802
3
4	Withdraw 60,000 in year 0. Each year thereafter, add back $4000 for 15 years				Rate of return:	0.06	After-tax rate of return:	0.051	Tax rate:	0.3
5
6	1: Use the RRSP HBP				2: Use Non-registered account				3: Use TFSA
7	Year	RRSP	TFSA	Non-reg	RRSP	TFSA	Non-reg		RRSP	TFSA	Non-reg
8	n-1	$60,000.00	$60,000.00	$60,000.00	$60,000.00	$60,000.00	$60,000.00		$60,000.00	$60,000.00	$60,000.00
9	0 - buy house/withdraw	-$60,000.00					-$60,000.00			-$60,000.00
10	Start	$0.00	$60,000.00	$60,000.00	$60,000.00	$60,000.00	$0.00		$60,000.00	$0.00	$60,000.00
11	1	$4,000.00	$63,600.00	$63,060.00	$63,600.00	$63,600.00	$4,000.00		$63,600.00	$4,000.00	$63,060.00
12	2	$8,240.00	$67,416.00	$66,276.06	$67,416.00	$67,416.00	$8,204.00		$67,416.00	$8,240.00	$66,276.06
13	3	$12,734.40	$71,460.96	$69,656.14	$71,460.96	$71,460.96	$12,622.40		$71,460.96	$12,734.40	$69,656.14
14	4	$17,498.46	$75,748.62	$73,208.60	$75,748.62	$75,748.62	$17,266.15		$75,748.62	$17,498.46	$73,208.60
15	5	$22,548.37	$80,293.53	$76,942.24	$80,293.53	$80,293.53	$22,146.72		$80,293.53	$22,548.37	$76,942.24
16	6	$27,901.27	$85,111.15	$80,866.30	$85,111.15	$85,111.15	$27,276.20		$85,111.15	$27,901.27	$80,866.30
17	7	$33,575.35	$90,217.82	$84,990.48	$90,217.82	$90,217.82	$32,667.29		$90,217.82	$33,575.35	$84,990.48
18	8	$39,589.87	$95,630.88	$89,324.99	$95,630.88	$95,630.88	$38,333.32		$95,630.88	$39,589.87	$89,324.99
19	9	$45,965.26	$101,368.74	$93,880.56	$101,368.74	$101,368.74	$44,288.32		$101,368.74	$45,965.26	$93,880.56
20	10	$52,723.18	$107,450.86	$98,668.47	$107,450.86	$107,450.86	$50,547.02		$107,450.86	$52,723.18	$98,668.47
21	11	$59,886.57	$113,897.91	$103,700.57	$113,897.91	$113,897.91	$57,124.92		$113,897.91	$59,886.57	$103,700.57
22	12	$67,479.76	$120,731.79	$108,989.29	$120,731.79	$120,731.79	$64,038.29		$120,731.79	$67,479.76	$108,989.29
23	13	$75,528.55	$127,975.70	$114,547.75	$127,975.70	$127,975.70	$71,304.25		$127,975.70	$75,528.55	$114,547.75
24	14	$84,060.26	$135,654.24	$120,389.68	$135,654.24	$135,654.24	$78,940.76		$135,654.24	$84,060.26	$120,389.68
25	15	$93,103.88	$143,793.49	$126,529.56	$143,793.49	$143,793.49	$86,966.74		$143,793.49	$93,103.88	$126,529.56
26	Final - RRSP meltdown	$65,172.72	$143,793.49	$126,529.56	$100,655.44	$143,793.49	$86,966.74		$100,655.44	$93,103.88	$126,529.56
27	Final Combined	$335,495.77			$331,415.68				$320,288.88
28
29	Future value of using HBP:	$4,080.09
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100