Grace period before repayment
In its 2024 budget, the federal government announced a new temporary relief measure by extending the start of the repayment period from 2 to 5 years for all withdrawal requests made under the HBP between January 1, 2022 and December 31, 2025.
| WITHDRAWAL DATE | START OF REPAYMENT PERIOD |
|---|---|
| Before January 1, 2022 | From the 2nd year following the first withdrawal |
| Between January 1, 2022 and December 31, 2025 | From the 5th year after first withdrawal |
| After December 31, 2025 | From the 2nd year following the first withdrawal |
Example: You withdrew $15,000 under the HBP in 2024 and you will start making your repayments of $1,000/year in 2029. Any contributions you make to your RRSP before March 1, 2029, will be considered new RRSP contributions. You may, however, make one or more early HBP repayments during this time. To do so, you must submit a request to Saving Services.
Contributions received on or after March 2, 2029, will be automatically applied to your HBP balance owing, up to your required minimum annual repayment amount of $1,000.
How much do I need to pay?
Your annual repayment amount will be equivalent to 1/15 of the total due.
Because your repayment period does not start until a few years after your purchase, the Canada Revenue Agency and the Fonds will send you a statement of account to remind you of your repayment obligations and the amount you owe. To help you stay on top of your payments, you'll receive these statements every year.
If you pay more than the minimum required payment for a given year, your minimum required payments for later years will be reduced. You'll still have to make repayments in the following years until your HBP balance reaches $0. If you wish to make an HBP payment in excess of the amount required for the current year, please call our Saving Services.
How do I make my HBP repayments?
As long as you have an HBP balance owing, any contributions you make to your RRSP will be applied to your repayment first. You can make your HBP payments by bank withdrawal or payroll deduction, through your online account, or by contacting our Saving Services agents.
Please note: for an HBP made at another financial institution, only payroll deductions will allow you to make your HBP repayment to the Fund.
Designating a repayment on your tax return
You'll need to indicate on your income tax return how much of your RRSP contribution is earmarked for your HBP repayment. You can ask your accountant to do this on your behalf, or you can do it yourself with tax preparation software or by filling out Schedule 7 - RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities with the information on your RL-10 slips.
