The title of the question says it all.

If I detour my $25,000 down payment into my RRSP for a few months to get the tax benefit associated with that, then withdraw it for the HBP, and continue making my regular $400/mo contributions, are all my contributions still tax deductible as they would have been had I not withdrew money for the HBP?

1 Answer 1


Your $400/month contributions are still tax deductible in the current tax year. However, each subsequent tax year, you will be required to repay at least 1/15 of the total amount you withdrew.

In your example, let's say you used $25,000 for the home buyer's plan in the 2015 tax year. Throughout 2015, you contribute $400/month toward your RRSP.

For the 2015 tax year, you are able to claim $4800 in RRSP contributions.

For the 2016 tax year, you continue to contribute $400/month toward your RRSP. However, you are only able to claim $3133.33 in RRSP contributions, and must put at least $1666.67 toward repayment of your HBP. This will continue until you have entirely repaid the HBP. You are free to repay it early.

This CRA page has the details.

  • Happy to help out. Welcome to the site. You had a great first question. Feb 18, 2015 at 19:16

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