There are lots of questions when it comes to taxes. Let us answer them for you. With members averaging 18 years of experience, the Tax Advisory is your trusted source of tax information.
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I borrowed money from my RRSP under the Home Buyers Plan to purchase my first home. How do I pay the money back?
The HBP allows you to pay back the money you borrowed from your RRSP over 15 years. Your first payment would be due two full calendar years from the withdrawal date, you should receive a notice from the CRA showing your required repayment amount. The actual repayment is handled on your annual tax return; you will need to allocate the repayment from your RRSP contributions made during the year.
You can pay off the HBP amount early or take the entire 15 years. It is money you have borrowed from yourself. But if you choose not to repay the money, the amount will be added to your income and taxed accordingly.