Personal Finance

Tax - RRSP for First Time Home Buyer Purchase

  • Last Updated:
  • Feb 17th, 2022 7:53 pm
[OP]
Newbie
Aug 21, 2019
27 posts
5 upvotes

Tax - RRSP for First Time Home Buyer Purchase

Hi everyone,

I used $15,000 of my RRSP to purchase my first home as part of the homebuyer's plan. For this upcoming tax season, I check CRA and I have $18,000 deduction limit. Does this mean that I can only contribute $3000 to my RRSP which is the difference? Thanks!
1 reply
Jr. Member
Jul 8, 2018
126 posts
93 upvotes
Toronto
To use your RRSP, you should have used the proper form from the Home Buyer's Plan. The bank should give you a T4RSP for the withdrawal, which will actually increase your RRSP contribution limit in the year it occurred. This is because you'll eventually need to repay the RRSP for the amount of the withdrawal. Your deduction limit won't change as a result of the HBP since the repayments are not tax deductible.

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