Repayments to the Home Buyers' Plan (HBP Repayment)

What’s in this article?

 

What is this?

The Home Buyers’ Plan (HBP) allows you to withdraw $25,000 from your RRSP without paying tax immediately, as long as the funds are used to purchase a home that will become your principal place of residence.

 

Canada Revenue Agency (CRA) says...

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

Your first repayment starts the second year after the year you withdrew funds from your RRSPs for the HBP.

 
 

Revenu Québec says…

This form is to be used by an individual who is a participant in the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP) and who must repay an amount to an RRSP or wishes to make a repayment before the prescribed deadline.

 

Am I eligible?

You have up to 15 years to repay RRSP funds withdrawn under the HBP. You must repay 1/15 of the total amount withdrawn each year, until all your withdrawals under the HBP have been repaid. If you do not repay the specified amount for a given year, you will need to include it in your income for that year.

The CRA will send you an HBP Statement of Account with your notice of assessment or notice of reassessment. The statement of account will include:

  • Your total withdrawals under the HBP
  • The amount you have repaid so far (including any additional payments and amounts you included on your income tax return because they were not repaid
  • Your remaining Home Buyers’ Plan (HBP) balance
  • The amount you have to contribute to your Registered Retirement Savings Plan (RRSP) or Pooled Registered Pension Plan (PRPP) and designate as a repayment for the following year

If you would like to pay more than the required payment, the CRA will recalculate the balance to be repaid over the remaining years and provide you with your new required repayment amount.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

1. Click the PREPARE tab.
2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:



3. Click the checkbox labelled I contributed to an RRSP/PRPP or have unused contributions.
4. Scroll to the bottom of the page and click Continue.
5. Click the RRSPS & INVESTMENTS icon. You will find yourself here:



6. Under the RRSPS heading, click the checkbox labelled Contributions to RRSPs or any other retirement fund or account (Schedule 7).
7. Click the checkbox labelled Repayments to the Home Buyers’ Plan (HBP) (Schedule 7).
8. Scroll to the bottom of the page and click Continue.
9. Enter your RRSP contributions for the year and related information on the Contributions to RRSPs or any other retirement fund or account page.
10. Scroll to the bottom of the page and click Continue.
11. When you arrive at the Repayments to the Home Buyers’ Plan page, enter your HBP repayment information.

 

 Where can I learn more?