Tip 99 - When should you not make a repayment to your HBP?

If you have very little income this year, consider carrying-forward any RRSP contributions and not designating any repayments to your RRSP Home Buyers Plan. The minimum Home Buyers Plan repayment amount will then be added to your taxable income for the year, but will be taxed in a lower tax bracket. In addition, you can also deduct your RRSP contributions in a subsequent year when you are in a higher tax bracket.

However, be aware that stretching out or not making repayments to yur HBP can reduce the size of your retirement fund.

Click here for a complete list of Tax Tips.