So thankful for this channel! My bank has been recommending exactly what you had said about putting my cash savings for a down payment into RRSP and using HBP and the benefit of tax refund.. Was hesitant until watching this video 🙂. I'm also a nurse so you giving an example about your wife's situation is truly so helpful! Thank you😁
If you take out $35k for a house. Could you put 5% down for a down payment and use the left overs for renovations? Example 300,000 PP 15K DP = 5% would leave roughly 20k for renovations. Or does the entire 35k have to go towards the down payment? Thanks in advance :)
I have a question might be a dumb if the money in my RRSP is MY money and and I take it out to buy MY house to WHO am i making repayments ? I understand that I just have to put back 35 k in my Rrsp over the next 15 years but the initial 35 k i took is Tax free?
Great video. For the spouse who pulled an amount from a spousal rrsp they used the HBP. Where do they have to make the repayments to be counted as a repayment? Into the spousal rrsp or their own personal rrsp.
Great video as always. I have a question though. Say the RRSP contribution room is 20000, and annual HBP repayment is 1500. Can you put 21500 into your RRSP, allocate 1500 towards repayment and 20000 towards taxable income deduction? Or would it be over-contribution by 1500?
How is this repayment reported? Is there a section in the taxes to report this? Do you have to fill out a form for the bank at the time you repay this money into the rrsp account? Just wondering how the bank and government know this money has been contributed to repay the rrsp loan on time.
Great stuff indeed, I have one question: I put 25k in RRSP before I used for HBP (90 days after) now I am paying it back. What if in few years (say 2024 March) I move to a different country for good and file my tax for 2024 in early 2025, can I skip the HBP repayment, would CRA consider that repayment amount as my income without any penalty or I have to manually declare it as my income in my tax forms?
Good question, I assume you either keep taking as income or pay it back. If you declare non-residency you may have to pay back the full amount. Not sure to be honest, you would need to contact CRA on this.
Adam, have any of your clients mentioned or asked about the absence of the HBP summary box on 2020 Notice of assessments? I noticed that neither my nor my wife’s Notice contained the HBP summary box showing the remaining balance owing and the minimum repayment amount.
Robert, I just checked my wife's and sure enough, not there. I also logged into CRA and it says that HBP info (under the RRSP and TFSA area) in unavailable.
Thanks for this! Curious as to how someone could set the allocations of the payments to the RRSP (All in HBP repayment or regular RRSP contribution or a mix of both) If it was with a bank, could I just set it up there? or does it have to be designated on a person's tax return? Thanks in advance!
The TFSA would just be a withdrawal, not part of the HBP. Whatever amount yo take from your TFSA you would get back in contribution room the following calendar year.
Question: The money in the RRSP is my own money that I have contributed. So if I withdraw 35k as part of the HBP, I should be paying back only the taxes that the government would have withheld and not the entire amount. So if we assume arbitrarily the taxes would have been 10k I should be paying back that amount and not the entire 35k. Granted when I retire I will be 25k short in my RRSP. Am I missing something?
We are thinking of buying a new house. It would be our first one. I had a question. So we make RRSP account at our financial institution right? and how much money do we have to put in RRSP in order to get qualified? I’m really confused how it works. If you could pls explain a little
You both can pull up to $35k out of RRSP for the home buyers plan. As long as you qualify for the plan, then that means up to $35k each to RRSPs. So set up accounts at your financial institution and make the deposits. When time to pull for the house you let them know you are using the RRSP for a home buyers plan. There is a separate form to fill out for this so they don't withhold taxes. Hope this helps.
Hi I run a small business this year I have to pay 11,000 tax I haven’t contributed anything yet in RRSP can I still put some money in RRSP to cut down this tax amount or it’s too late my tax is due on July 7/2023 please advise thanks
Hi! I plan on my using my hbp to get out of my locked in RRSP plan is that legal? Because I was as to withdraw out of it and I don't want to pay it back and pay the income tax on that
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So thankful for this channel! My bank has been recommending exactly what you had said about putting my cash savings for a down payment into RRSP and using HBP and the benefit of tax refund.. Was hesitant until watching this video 🙂. I'm also a nurse so you giving an example about your wife's situation is truly so helpful! Thank you😁
So glad it helped you out - and always easier when using a real life experience like my wife!
If you take out $35k for a house. Could you put 5% down for a down payment and use the left overs for renovations? Example 300,000 PP 15K DP = 5% would leave roughly 20k for renovations. Or does the entire 35k have to go towards the down payment? Thanks in advance :)
I have a question might be a dumb if the money in my RRSP is MY money and and I take it out to buy MY house to WHO am i making repayments ?
I understand that I just have to put back 35 k in my Rrsp over the next 15 years but the initial 35 k i took is Tax free?
Great video. For the spouse who pulled an amount from a spousal rrsp they used the HBP. Where do they have to make the repayments to be counted as a repayment? Into the spousal rrsp or their own personal rrsp.
Would you elaborate more HBP under spousal Rdp and tax strategy over there?
Great video as always. I have a question though. Say the RRSP contribution room is 20000, and annual HBP repayment is 1500. Can you put 21500 into your RRSP, allocate 1500 towards repayment and 20000 towards taxable income deduction? Or would it be over-contribution by 1500?
How is this repayment reported? Is there a section in the taxes to report this? Do you have to fill out a form for the bank at the time you repay this money into the rrsp account? Just wondering how the bank and government know this money has been contributed to repay the rrsp loan on time.
Great stuff indeed, I have one question:
I put 25k in RRSP before I used for HBP (90 days after) now I am paying it back. What if in few years (say 2024 March) I move to a different country for good and file my tax for 2024 in early 2025, can I skip the HBP repayment, would CRA consider that repayment amount as my income without any penalty or I have to manually declare it as my income in my tax forms?
Good question, I assume you either keep taking as income or pay it back. If you declare non-residency you may have to pay back the full amount. Not sure to be honest, you would need to contact CRA on this.
Adam, have any of your clients mentioned or asked about the absence of the HBP summary box on 2020 Notice of assessments? I noticed that neither my nor my wife’s Notice contained the HBP summary box showing the remaining balance owing and the minimum repayment amount.
Robert, I just checked my wife's and sure enough, not there. I also logged into CRA and it says that HBP info (under the RRSP and TFSA area) in unavailable.
Thanks for this! Curious as to how someone could set the allocations of the payments to the RRSP (All in HBP repayment or regular RRSP contribution or a mix of both) If it was with a bank, could I just set it up there? or does it have to be designated on a person's tax return? Thanks in advance!
Designated on the tax return.
nice video. can we start paying immidiately into RSP ?before 2 year mark?
Yes you can
With the pices of house shooting up. Can I use my TFSA in conjuction with RSP? And how would I repay my TFSA?
The TFSA would just be a withdrawal, not part of the HBP. Whatever amount yo take from your TFSA you would get back in contribution room the following calendar year.
Question: The money in the RRSP is my own money that I have contributed. So if I withdraw 35k as part of the HBP, I should be paying back only the taxes that the government would have withheld and not the entire amount. So if we assume arbitrarily the taxes would have been 10k I should be paying back that amount and not the entire 35k. Granted when I retire I will be 25k short in my RRSP. Am I missing something?
I don’t have 35k in my rrsp. Am I still eligible to use rrsp for first time home buyer? And just repay it?
If recently separated/divorced, will the buyer qualify for the home buyers plan?
Only if you haven't owned in the past 4 years.
Can I withdraw more than I contributed??
So bottomline is...you have to put the money into the rrsp to get it out of the rrsp otherwise you're just saving money in a regular savings account.
That’s a good question
We are thinking of buying a new house. It would be our first one. I had a question. So we make RRSP account at our financial institution right? and how much money do we have to put in RRSP in order to get qualified? I’m really confused how it works. If you could pls explain a little
You both can pull up to $35k out of RRSP for the home buyers plan. As long as you qualify for the plan, then that means up to $35k each to RRSPs. So set up accounts at your financial institution and make the deposits. When time to pull for the house you let them know you are using the RRSP for a home buyers plan. There is a separate form to fill out for this so they don't withhold taxes. Hope this helps.
@@ParallelWealthbut if i dont have 35k in my rrsp account am i still qualified?
Hi I run a small business this year I have to pay 11,000 tax I haven’t contributed anything yet in RRSP can I still put some money in RRSP to cut down this tax amount or it’s too late my tax is due on July 7/2023 please advise thanks
Too late for 2022. But depending on your year end you may be able to do some planning around all of this - talk to your advisor or accountant.
Hi! I plan on my using my hbp to get out of my locked in RRSP plan is that legal? Because I was as to withdraw out of it and I don't want to pay it back and pay the income tax on that
Nope, can't use LIRA for HBP
@@ParallelWealth sorry I already withdrew it out for a down payment on my house and I'd rather not pay it back and have it added to my income tax
Can single people use the hbp?
Yes they can
Would you elaborate more HBP under spousal Rdp and tax strategy over there?