Repaying Home Buyers Plan (RRSP)

[e2ej3k]

Hello,
I used 25k of my RRSP a while ago and I am repaying them as scheduled.

My question, is can I contribute to a spousal RRSP, and would that be considered repaying my HBP?

When I say spousal RRSP, I mean, I would be the contributor, my wife you then be the annuitant. Is that acceptable for the CRA?

The motivation is I will be getting a pension through my work. She will not. When we retire, I will be in a higher tax bracket than her... Is my reasoning sound?

Thanks,

 

[yoyo23]

@e2ej3k Contributions to a spousal RRSP cannot be designated as HBP repayments.

https://www.canada.ca/en/revenue-ag...rrsp-s-under-home-buyers-plan.html#spcl_sttns

 

[e2ej3k]

@yoyo23 That is the answer I was looking for. Thank you!

 

[highhopes]

@e2ej3k Alternatively, the penalty for non-repayment is the tax owed on the amount withdrawn (effectively treated like an RRSP withdrawl).

e.g. If you borrowed 15k, didn't repay for 5 years, you would owe income tax on 5k at your marginal rate. You would lose your RRSP contribution room, but the difference could be placed in your spousal RRSP.