DTC/RDSP - Is this how it would work?

[emdoug]

So I'm 23 and qualified recently for the DTC, and opened a RDSP backing to 2005.
The bank told me that the government contribution can be added from the past 10 years.

Maximum yearly contribution from the government is $10,500 for retroactive grant contributions and $11,000 for retroactive bond contributions.

Amount of government contributions I can receive from this retro is $35,000 in grant and $5,000 for bonds.

I will be purchasing a house with my SO in April, and I'm thinking 10 years from now I would like to be able to pay a large portion of that mortgage off.

Would it be in my best interest to deposit $4,500 to the RDSP for 2015, receive $10,500 in grants and $5,000 in bonds. Do the same for the next 2 years so it ultimately would be:

Deposit $15,000 ($1,500 x 10 yrs), receive $35,000 in grant contributions, and $10,000 in bonds, totaling $60,000.

Withdraw from the government contribution/grants/bonds for 10 years, then 10 years from then when I'm ~35 withdraw the funds with no penalty (by waiting 10 yrs from the last gov contribution). Once I withdraw the funds, reapply for the government contribution and continue as per the usual $1,500 deposit and $3,500 contribution.

For some reason I'm thinking the plan is too good to be true? Can someone let me know if I'm missing something critical here? Thanks! Also would like any advice on whether this is a good idea or if there's a better way for me to be doing this.

[jasperandchar]

wrong thread sorry

[emdoug]

Thanks, I wasn't sure where to post!

[LisaLisaBoBisa]

Your plan is correct however you can't contribute back to 2005 as the rdsp only began in 2008 - so you're currently 3 years short of withdrawl.. When do you qualify until? if you become ineligible at any point in the next 3 years the entire plan is out.. Yes, you qualified back to 2005 but plan didn't exist then. Hope this helps.