Thanks for your question. The Home Buyers' Plan (HBP) is a Canada Revenue Agency (CRA) program for first-time home buyers that allows you and/or your spouse or common-law partner to withdraw up to $35,000 from your own Registered Retirement Savings Plan (RRSP) to buy or build a home. You and your spouse/partner can each withdraw $35,000 from your own RRSP for a combined maximum of $70,000.
If you withdrew money under HBP, you need to start repaying starting from the second year following the year in which you made the withdrawal. You have 15 years to repay the amount you withdrew. Each year, you need to put at least one-fifteenth of the total amount back into your RRSP, until the full amount you withdrew is returned to your RRSPs. You can find your minimum required annual repayment amount by accessing your CRA My Account or on your most recent Notice of Assessment.
If you do not contribute the minimum required amount back into your RRSP, CRA adds the equivalent amount to your income for the year and you get taxed on the required amount.
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If you do not contribute the minimum required amount back into your RRSP, CRA adds the equivalent amount to your income for the year and you get taxed on the required amount.