A deposit into your RRSP does not automatically become a Home Buyers' Plan repayment. The return must identify the eligible amount being designated, and that amount is not also deductible as an ordinary RRSP contribution.
Start with your current HBP statement, which shows the remaining balance and required repayment information.
Check your own starting year
The HBP generally provides a 15-year repayment period. For first withdrawals from January 1, 2022 through December 31, 2028, required repayments start in the fifth year following the withdrawal year. The 2026 legislation extended this relief to first withdrawals made in 2026, 2027 and 2028. The current rule is in subsections 146.01(4.1) and (4.2) of the Income Tax Act.
For example, a first withdrawal in 2022 starts required repayments in 2027. A first withdrawal in 2026 starts them in 2031, not 2028. Check your first withdrawal year against the HBP statement rather than carrying forward a start date from older advice.
Match the deposit and the designation
Eligible repayments can be made during the repayment year or its following first-60-days contribution period. The amount designated as an HBP repayment is reported through Schedule 7. It does not require ordinary RRSP deduction room, but it also does not create an RRSP deduction.
Suppose the required repayment is $1,800 and you make an eligible $3,000 deposit. Designating $1,800 leaves $1,200 to consider under the ordinary contribution and deduction rules. Designating the full $3,000 has a different effect on the HBP balance. The same dollar cannot do both jobs.
Deal with a shortfall explicitly
If only $1,200 is designated against that $1,800 requirement, the $600 difference generally becomes RRSP income for the year. It is not simply an unpaid bill that can be ignored until later.
Keep the contribution receipt, Schedule 7 and the next HBP statement together. Check that the balance reflects the designation before planning the following year's payment. A qualifying FHSA withdrawal has different rules and no HBP repayment schedule.
