I'm in my mid 40s and a few years ago I used my HELOC to start a new business. I was paying interest only on the loan in hopes of paying off the HELOC in lump sum amounts once the business was profitable.
Unfortunately, the business has not taken off and I will need to close the business. I want to cash out my RRSPs and after tax, I will be able to repay the HELOC. The amount owing is quite large and my current/future earning potential may not support the monthly repayment which would take 25 or more years.
What are the pros and cons of paying off my HELOC with the RRSP?
From the feedback, here is some more info:
- the business is incorported and will be dissolved.
- the heloc is personal.