What happens if I miss my Home Buyers' Plan repayment?

Arsen Accounting Services · Question 162 · Sources checked October 29, 2026

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An amount you fail to repay under the Home Buyers' Plan can become taxable income for the year. The required repayment depends on your withdrawal year, remaining balance, repayment period, and any applicable temporary relief.

Use the current repayment statement

CRA's HBP guidance provides a repayment schedule and explains how to designate eligible contributions as repayments. Amounts designated as repayments do not also generate an RRSP deduction. Check the balance and required amount rather than assuming every RRSP contribution automatically counts.

Temporary rules have changed the starting year for certain withdrawal cohorts. For example, CRA's guidance states that a first withdrawal in 2022 begins repayment in 2027. Use the rules for your own first-withdrawal year and the current CRA statement.

Official guidance: [1], [2].

Reconcile contributions before filing

Suppose you contribute to an RRSP during the year but your return treats the whole amount as an ordinary deduction. Without the appropriate repayment designation, the HBP requirement may not be satisfied as intended. The contribution receipt and Schedule 7 need to work together.

Prepare the repayment file

• First withdrawal year and original HBP amount.
• Current CRA HBP statement and prior designations.
• Eligible contribution receipts for the repayment period.
• Details of earlier repayments, missed amounts, or residency changes.

Ask your preparer to compare the required repayment with the amount designated and explain any income inclusion. Budget for the next year's payment after the return is filed. Avoid applying an old article's repayment start date to a different withdrawal cohort without checking current CRA guidance.