# Question about HBP repayment



## indexxx (Oct 31, 2011)

So after a couple of decades of wanting to be as mobile as possible, I'm now thinking of my first home purchase here in BC's Lower Mainland. I'm eligible for the Home Buyer's Plan, allowing me to access my RRSPs to fund my downpayment. 

I have a plan at work that allows me to put 4% of my salary into the company plan, and they match it with another 6%. It goes through Great West Life. That monthly amount would more than cover my 15-year downpayment loan- so I'm thinking basically my employer would be paying my downpayment off. My question is whether I can designate/claim my employment RRSP plan as my loan repayment? 

Thanks!


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## Spudd (Oct 11, 2011)

Yes, your work RRSP match just counts as RRSP contributions when you do your taxes. And then you tell them how much of your contributions you want to designate as HBP repayment.


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## indexxx (Oct 31, 2011)

Actually, I just answered my own question; 5th point under RRSP withdrawal conditions:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/menu-eng.html

So unfortunately, group RRSP contributions from one's employer are not eligible. But hey- I'm still getting 150% return plus the deduction!


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## Spudd (Oct 11, 2011)

Sorry about the wrong answer! I stand corrected.


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## Silverbird (Mar 5, 2013)

indexxx said:


> Actually, I just answered my own question; 5th point under RRSP withdrawal conditions:
> 
> http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/menu-eng.html
> 
> So unfortunately, group RRSP contributions from one's employer are not eligible. But hey- I'm still getting 150% return plus the deduction!


I think that point on the CRA website only means you can't source HBP funds out of the group account (ie they can't or won't let you do it).
If you have RRSP funds elsewhere in an individual account, you can withdraw those under the HBP.
I'm infering that was your plan, take out the funds now, and use the contribs + top up towards the HBP repayment.
Once you get the funds out, any qualifying RRSP contribution (that is reported on a T-slip) can be used for the HBP repayment. For repayments, the RRSP section on your annual tax return is the same, except that you designate a portion of all the RRSP contributions for the year as HBP repayment.


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## indexxx (Oct 31, 2011)

Really? Yes, that is my intent. I have ample in my personal RRSP from before I joined this company. So yes my hope was to draw out 25k for a downpayment and in essence have my employer pay it back.


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## Silverbird (Mar 5, 2013)

indexxx said:


> Really? Yes, that is my intent. I have ample in my personal RRSP from before I joined this company. So yes my hope was to draw out 25k for a downpayment and in essence have my employer pay it back.


I'm not an expert, but I would test the theory using 2 steps:

1) See if the contributions under the employer scheme are classified as RRSP contributions (rather than RPP contributions) and will be reported in an annual slip - should be able to ask your HR dept or GWL about that. If this is the case, you can then use these as HBP repayments. The big problem, is if its an RPP (Registered Pension Plan) this is all a no go as it can't be used towards HBP repayments

2) Ask your current RRSP provider if you can do an HBP withdrawal. If this is the case, you can get the funds.

The key is that the HBP funds don't need to be repaid to the exact same RRSP, just any RRSP of yours. When I did this 3 years ago, I withdrew from an RRSP account at PC, All of my subsequent repayments have been via my RRSP at Questrade.


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## indexxx (Oct 31, 2011)

I've got enough personal RRSP money in Questrade and TD to cover the HBP. The issue is whether my monthly employer contributions are eligible to pay it back for me, which it seems they are.


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