RRSP Home Buyers Plan & Bankruptcy

house mortgage

Table of Contents

RRSP Home Buyers Plan

With the prices of real estate continuing to rise, getting a proper down payment for some may need to come from ones RRSP via the Home Buyers Plan. The HBP allows one to withdraw money from the RRSP account to be used for down payment of the real estate property.

Repay your Home Buyers Plan Loan

When the time comes for you to start paying back on your loan, the CRA will send out a HBP Statement of Account. This is a yearly notice that is included within your income tax notice of assessment. This will show the withdrawn amounts and also show the amount that is left to repay in total and the amount that is due that year. Repayments to this can be made in the same time format of your RRSP contributions.

Generally you will be looking at repaying this over the course of 15 years, with paying back yearly 1/15th of the total amount. Granted you can pay it back at a higher rate, but this is the minimum requirements. So essentially you will be repaying this loan until the HBP balance is back to zero.

Bankruptcy and your Home Buyers Plan Payments

With regards to your HBP and your real estate property. If you either decide to sell or if for some unfortunate event you are forced to file for Bankruptcy, you are still required to repay/make your Home Buyers Plan repayments. Any remaining payments have to be reported as income.

If you have Home Buyers Plan payments remaining when your RRSP matures for the year that you are 69, the remaining HBP loan amount must be either fully repaid or it will need to be reported as income.

If You Do Not Repay

If you opt to not repay your Home Buyers Plan, the amount that you are owing for that particular year, will be included as income and it will be subjected to tax as well.

For more information, please see the official site from the Government of Canada http://www.cra-arc.gc.ca/hbp/

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

I am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
Carolina Marroquin
1708815208
I am very excited for the helpful service I receive from David sklar &Associates Inc ! My experience with coronation she is a professional and skill person! We'll done ✔ thank you very much, Gw
garfield wallace
1708730999
Great and friendly staff. They went out of their way to help me with the process. David Sklar and Associates are more then professionals. Christine sylver helped me with every steps, everytime I asked for more help she was always there for me with a smile. Very professional and patient. I want to thank Christine Sylver for everything she did to help me through this process and by giving me a new start.
ray pat
1708550360
I was so nervous to go and then i met trina beautiful compassionate understanding trina how lucky for me what a professional thank you thank you
Penelope Mather
1708303088
It was easy to get everything started and I am happy that I choose you, thank you.
Marina Granado
1707942981
I came in with a lot of anxietyChristine SylverHernee Templonuevogave me the confidence I needed
George Carvalho
1707837852
A great place to find out the best way to remove your debt. I discussed my problem with a with a fantastic lady who's named Grace. This lady showed me a couple of ways to lower my debt and I chose one. Thanks to Grace one day I will be out of debt, but until then my spending without cause has come to an end.To the staff and especially Grace of David Sklar and Associates thank you.Bob Barnesi will be one day out of debt
Robert Barnes
1707781618
A wonderful experience with a very depressing financial situation.Cori is easy to talk to and understand, with what she is describing.
Verble Daniels
1707699079
The staff at David Sklar are absolutely life changing and phenomenal people to work with. They are a well dedicated team whose personal mission is to truly help you turn your life around. Don’t be afraid to call them. Don’t be afraid to be honest to ask for the help you need. Rest assured no matter your debt load they will assist without judgement and deliver with compassion the best way forward to legally seal your debts and give you a real chance again at life. I highly recommend their services. They changed my life. They will gladly help you too. My personal consultant Trina Powell is an incredible, smart, and extremely supportive ally. But know you’re in good hands no matter who they assign to help you. Change your life today and pick up the phone and call them you’ll only be sorry you waited so long.
Kelly Silke
1707344543
This was an is an excellent experience for me because I am now able to retire comfortable in five years an debt free. Life seems to now begin. I should have done this earlier. But I did not have a company to do a consumer proposal with that I trust. Thank you for saving me.
Carilyn HoseinAdams
1707147259
js_loader
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

Contact Us