How Do I Repay My RRSP Withdrawal Under the Home Buyers' Plan in Ontario?
Under the Home Buyers' Plan, you repay what you withdrew to your RRSP over up to 15 years. Your first minimum repayment is about one-fifteenth of the amount withdrawn, and after that the minimum is the remaining balance divided by the years left.
A repayment counts for a year if you make it in that year or in the first 60 days of the next year, and it is designated on Schedule 7. For a first withdrawal made between January 1, 2022 and December 31, 2025, and under an extension for first withdrawals between January 1, 2026 and December 31, 2028, the 15-year period starts in the fifth year after the year of the first withdrawal instead of the second.
If you do not make the minimum required repayment, the shortfall is added to your income as RRSP income on line 12900 of your return. You can repay the full amount at any time, which reduces later minimums. Because the relief depends on when you withdrew, confirm your own schedule with a lawyer or accountant.
Key takeaways
- Home Buyers' Plan withdrawals must be repaid to your RRSP over up to 15 years.
- Your first minimum repayment is about one-fifteenth of the amount withdrawn, and a repayment counts for a year if made in that year or in the first 60 days of the next.
- Temporary relief can start the 15-year period in the fifth year after the year of a first withdrawal instead of the second.
- A missed minimum repayment is added to your income on line 12900, and you can repay the full amount at any time.