RRSP & HBP

Repayment will start in 2018 and you use your regular RRSP contributions. When you file your taxes you specify that you want a portion of your RRSP contributions to be allocated towards HBP repayment, no additional forms required. You cannot contribute more than your room towards HBP repayment.

negotiater wrote: ↑ Repayment will start in 2018 and you use your regular RRSP contributions. When you file your taxes you specify that you want a portion of your RRSP contributions to be allocated towards HBP repayment, no additional forms required. You cannot contribute more than your room towards HBP repayment.

Thank you.

That would be RRSP contribution (off NOA ) + HBP (/15yr) as my new "total room" right?

negotiater wrote: ↑ Repayment will start in 2018 and you use your regular RRSP contributions. When you file your taxes you specify that you want a portion of your RRSP contributions to be allocated towards HBP repayment, no additional forms required. You cannot contribute more than your room towards HBP repayment.

Repayment does not have to start the year after the withdrawal but rather "the second year after the year you withdrew funds from your RRSP(s) for the HBP". In this case, the OP can wait till 2019 although they CAN start earlier if they so wish.

negotiater wrote: ↑ Repayment will start in 2018 and you use your regular RRSP contributions. When you file your taxes you specify that you want a portion of your RRSP contributions to be allocated towards HBP repayment, no additional forms required. You cannot contribute more than your room towards HBP repayment.

Correct me if I'm wrong, but I thought you're supposed to get a full tax year before you have to start paying it back? So if loan was taken out in July of 2017, repayment would start on Jan 2019.

*edit: poster above beat me to it*

mlong813 wrote: ↑ Thank you.

That would be RRSP contribution (off NOA ) + HBP (/15yr) as my new "total room" right?

The repayment shouldn't affect the contribution room you currently have and is accumulating as this repayment is a separate contribution on your tax returns.

Quoting the example from this website: "Contributions made as a repayment of your HBP withdrawal have no impact on your RRSP contribution limit. For example, if in any given year you contribute $10,000.00, which is your limit for that year, and you are required to repay $1,666.66 ($25,000 divided by 15 years) under the HBP, then you can use $8,333.33 of your contribution as a deduction. The $1,666.66 of unused contribution room is carried forward for future years."

negotiater wrote: ↑ Repayment will start in 2018 and you use your regular RRSP contributions. When you file your taxes you specify that you want a portion of your RRSP contributions to be allocated towards HBP repayment, no additional forms required. You cannot contribute more than your room towards HBP repayment.

How sure are you of this? since from my knowledge, people are allowed to pay off HBP at once if wanted, that means someone will contribute 25000 in one go. So you're telling me that person needs a 25000 contribution room equivalent to income of 138,888?

Raela wrote: ↑ How sure are you of this? since from my knowledge, people are allowed to pay off HBP at once if wanted, that means someone will contribute 25000 in one go. So you're telling me that person needs a 25000 contribution room equivalent to income of 138,888?

Sorry you are right, HBP will not be affected by contribution limit, OP take note. However there is no advantage in repaying early.

negotiater wrote: ↑ Sorry you are right, HBP will not be affected by contribution limit, OP take note. However there is no advantage in repaying early.

Besides more money in the market, but as a loan perspective, correct.

Thanks everyone.

negotiater wrote: ↑ Sorry you are right, HBP will not be affected by contribution limit, OP take note. However there is no advantage in repaying early.

actually there is, I posted on the other thread, basically if you are investing US dividend stocks, time and a big factor in compounding your money, the sooner you put your money back to RRSP, the earlier you can start compounding