Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 30, 2019 9:05:19 PM

Can I start repaying the HBP the year after I withdrew the money? I withdrew the money in June 2018. Can I designated RRSP contributions made in 2018 as repayment?

I withdrew money for the HBP in July 2018, but I made contributions to RRSP in the first 60 days on 2019. Can I designate these contributions as repayment? 

0 1 445
1 Replies
Level 11
Oct 30, 2019 9:05:20 PM

Yes you can repay your HBP early. CRA says:

If you choose to start your repayments earlier, your repayment period will stay the same. Any repayments made before you are required to start your repayments will reduce the amount you have to repay for the first year. If your early repayment(s) are more than the required amount for the first year, the difference will reduce your HBP balance and your remaining repayment amounts over the entire repayment period.

In other words, if you designate your first-60-days contributions on your 2018 return, depending on the amount, you'll either

a) reduce your amount due for repayment next year or

b) reduce the amount sue next year and reduce the overall amount due along with the amount of future payments due.