When do i need to make a repayment to HBP ? and how its calculated ?

[sansglee]

When do i need to make a repayment to HBP ? It says repayment starts year after the year you withdraw funds ? In 2015 i made a withdrawal, so i have to pay in the first 60 days of 2017 ?   How much do i have to pay and how its calculated ? Thanks for your help

[TurboTaxJeffrey · Accepted solution]

You will not need to show a repayment until filing your 2017 tax return.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/rpymnts/menu-eng.html

[sansglee]

Thanks for your reply, Just wanted to confirm, so the repayment starts only after i file tax for 2016 ?

[TurboTaxJeffrey]

The way it works is you purchase your RRSPs as normal...when you file your 2017 return, you assign a portion as repayment and you can still claim the deduction on the balance.  I would recommend showing the minimum repayment required, and maximizing the deduction for the tax year...you have 15 years to pay the amount back, and it's interest free.

[TurboTaxJeffrey]

your NOA will show you the required minimum repayment for the following year.

[TurboTaxAllen]

Here is some additional info: https://turbotax.intuit.ca/tips/repaying-withdrawals-under-the-home-buyers-plan-5216
To be clear you make your RRSP contribution normally and you would claim an amount as a HBP repayment, thus not affecting your RRSP deduction limit.