Real Estate

Homebuyers Plan & RRSP Lump Sum Contribution

  • Last Updated:
  • Sep 5th, 2015 11:15 am
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[OP]
Deal Addict
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Feb 1, 2009
3577 posts
2400 upvotes
Toronto

Homebuyers Plan & RRSP Lump Sum Contribution

Hi all, I have a question about the HBP and RRSP. I'm looking to purchase a house in the next year and have a large deduction limit for my RRSP.
  • I want to make the max contribution to withdraw for a home (so $25,000)
  • If I make the lump sum contribution and wait 89 days until I need the money, is there any real tax benefit?
  • Does the contribution cancel out when I claim I deposited $25,000 and then withdrew the $25,000 for HBP after 89 days?

Thanks for the help, just wanted to see if I could get any real tax benefit out of this. I know when doing taxes you have to claim what you took out from the HBP, but is this amount tax sheltered for the 15 years until you need to pay it back?
1 reply
Newbie
User avatar
May 6, 2014
95 posts
5 upvotes
Short answer ...
Yes for most ppl there should be a benefit (depends on ur income tax situation though)
No it does not cancel out
Must pay back $25k/15 per year min., and yes all that is tax sheltered

Make it 91 days before closing to be on the safe side

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