If you made a withdrawal from your registered retirement savings plan (RRSP) and otherwise met all the Home Buyer's Plan (HBP) conditions, you generally cannot cancel your participation. However, you may be able to cancel your participation only if one of the following situations apply:
- you did not buy or build a qualifying home or replacement property
- you became a non-resident before buying or building a qualifying home or a replacement property
You may also be able to cancel your participation if you made a withdrawal under the HBP to help a specified disabled person acquire a home, and one of the following situations apply:
- that person does not buy or build a qualifying home or replacement property
- you become a non-resident before that person buys or builds a qualifying home or a replacement property
You may also be able to cancel your participation if you made a withdrawal under the HBP following the breakdown of a marriage or common-law partnership, if both of the following apply:
- you did not dispose of an owner-occupied home at the time of the withdrawal before the end of the second calendar year after the calendar year of your first withdrawal under the HBP
- you did not acquire your spouse or common-law partner’s interest or right in the owner-occupied home
If you become a non-resident after a qualifying home is bought or built, you cannot cancel your participation in the HBP. However, special rules will apply to the repayment of your HBP balance. For more information, see the HBP participant becomes a non-resident.
If you choose to cancel and repay the full amount you withdrew under the HBP to your RRSPs by the required due date, your withdrawal will not be taxed. Any portion of your withdrawal that is not repaid by the required due date will have to be included in your income on line 12900 of your income tax and benefit return for the year you made the withdrawals. You can make your cancellation payments to any of your existing RRSPs, or a new RRSP for yourself.
Due date to make your cancellation payments
Generally, your cancellation payments are due by December 31 of the year after the year you made your first withdrawal under the HBP, if you cancel your participation because you did not buy or build a qualifying home or replacement property.
If you did not maintain your Canadian residency until you were required to acquire or build a qualifying home or replacement property, your cancellation payments are due by the earlier of:
- December 31 of the calendar year after the calendar year you made your first withdrawal under the HBP (if you have been permitted a one-year extension to acquire or build a qualifying home or replacement home, this specific date will be extended by an additional year)
- The date you filed your income tax and benefit return for the taxation year you made your first withdrawal
If you cancel your participation under the HBP following the breakdown of a marriage or common-law partnership for the reasons outlined above, your cancellation payments are due by December 31 of the second calendar year after the calendar year of your first withdrawal under the HBP.
Cancel your participation
To cancel your participation, do the following:
- Make a cancellation payment to any of your existing RRSPs, or a new RRSP for yourself by the due date.
- Send a completedForm RC471, Home Buyers' Plan (HBP)– Cancellationor a letter explaining the reason for your cancellation to the CRA. The form RC471 or the cancellation letter must be received by CRA no later than 60 days from December 31st of the year after the year you made your first withdrawal. The cancellation letter must include all of the following information:
- the reason why your participation in the HBP is being cancelled
- your last name, first name, complete address, and social insurance number (SIN)
- your signature
- Attach your cancellation payment receipts for any repayments to your letter or to a filled out Form RC471.
- Send the completed Form RC471, Home Buyers' Plan (HBP) – Cancellation or the letter to the CRA including your receipts. This information can be submitted by mail or by using My Account. If you would like to submit this information by mail, send it to one of the addresses below.
If your residential address is in Ontario, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut, Northwest Territories or in the following cities in the province of Quebec (Montréal, Québec City, Laval, Sherbrooke, Gatineau and Longueuil), send your request to:
Canada Revenue Agency
Sudbury Tax Centre
Pension Workflow Team
Post Office Box 20000, Station A
Sudbury ON P3A 5C1
If your residential address is in Manitoba, Saskatchewan, Alberta, British Columbia, Nova Scotia, New Brunswick or a location in the province of Quebec not listed under the Sudbury Tax Centre, send your request to:
Canada Revenue Agency
Winnipeg Tax Centre
Pension Workflow Team
Post Office Box 14000, Station Main
Winnipeg MB R3C 3M2
If you choose to cancel your participation and do not make any HBP repayments or cancellation payments to any of your existing RRSPs, or a new RRSP for yourself, the amounts you withdrew must be included as income on line 12900 of your income tax and benefit return for the year you made the withdrawals.
A cancellation payment cannot be made to your pooled registered pension plan (PRPP) or specified pension plan (SPP).
A cancellation payment is not considered to be an RRSP contribution and must not be entered as a contribution in "Part A – Contributions" on Schedule 7. You cannot claim a deduction for this amount on your income tax and benefit return.
Forms and publications
- Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP
- Form RC471, Home Buyers' Plan (HBP)– Cancellation
