RRSP to pay down debt?
The answer is NO, NO, NO, NO, NO, NO, NO. The tax implications of deregistering the RRSP are too frightening to even think about. I know people who have taken money out of their RRSPs and they are NEVER prepared for the amount of tax they will have to pay on those withdrawals. Of course, if you have unregistered investments - mutual funds, GICs, and the like that are not in an RRSP - and expensive consumer debt, then it makes sense to sell those investments and pay off the debt. Then rebuild your investments. Take the money you would have used monthly for debt repayment and start an automatic investment plan