HBP Repayment

[ching]

I had about $3500 left to pay back into my HBP withdrawal from 2 years ago. In November 2022, I did a payment to my account of the exact amount owed, resulting in a balance owed of $0. I know PFC is going to yell at me for not investing it, but I just wanted to not have to remember it every tax season, and rather just pay it off.

I am doing my taxes now, and I'm trying to understand if I'm designating my repayment correctly (Wealthsimple).

1. I see two lines in my RRSP contribution section, one for Jan-March and one for March-Dec.
2. The two amounts (Jan-March =x, March-Dec=y, so x+y=z) should include my contributions for the year including my manual repayment of my HBP. So z = x + y + HBP repayment (the tax receipt does not make this obvious)
3. When I put in the amount of my HBP repayment in the section that states "RRSP contribution designated as a repayment under the HBP" my refund amount goes down.
4. This should be expected because Wealthsimple bundled in the 3.5k into my total RRSP contributions for 2022, but I can't double dip (tax savings from when I initially contributed the 3.5k) which is why the refund amount went down

Is my line of thinking correct?

 

[dwrity90]

@ching Yep. Sounds like you’ve got the gist of it.

 

[ching]

@dwrity90 Thanks! Was hoping I was wrong and could see the refund amount go up.

 

[marko959]

@ching There’s reasons to pay it off faster.

Within a couple years of our HBP withdrawal our incomes increased substantially. We were essentially paying it back at a significantly higher tax rate, so we paid it all back in one go as we expected our incomes to rise further.