Something else to consider when you are repaying HBP or LLP loans...you do want to put at least the required payment back in each year as repayment, but if you purchase more in RRSP's then claim any amount over what the minimum repayment as a new deduction. Remember, these withdrawals are basically interest free loans to yourself...with Home Buyer's Plan (HBP) you have fifteen years to pay it back, with LLP you have 10 years. But you only pay back what was drawn out. So if it takes one year or ten years to pay it back, it's still the same amount of money. If you had a minimum repayment of $200, and you purchase $1000 in RRSPs, the RRSP account won't know that $200 is repayment and $800 is new money...it will just know there is another $1000 come into the account for potential growth. Mind you, if you are in a position where you have accidently purchased more in RRSPs, if you do have room to show a little more repayment, then do so to avoid the penalty for over contributing. For instance...you may have to repay $200, with the outstanding balance being $2000 for a LLP loan. If your RRSP contribution room is $1000 but you have purchased $1500, you can show a repayment of loan of $500 and still have $1000 as a new deduction. There is a cushion of $2000 that you can over contribute to RRSPs before a penalty is incurred, but I hope I have got the basic idea across.
Some people think that showing more RRSP purchases to a new deduction and not paying back the required amount of the loan is good strategy...this is not. If you do not show the required minimum repayment, then the difference between what is required and what is shown as repayment is added to your tax return as additional income...so the increased deduction would be exactly offset by the increased income. However, once you have shown the increased income, this means you have essentially lost that RRSP room. So if you can, you should always show at least enough to cover the minimum repayment.
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