Stretching out your repayments to your HBP can detrimentally affect the size of your retirement nest egg.
Under the terms of the Home Buyers’ Plan (HBP), you are required to re-contribute one-fifteenth of your withdrawal each year starting two years after the withdrawal was made. Therefore, if you withdrew HBP funds in 2001, the RRSP may not be fully repaid until 2017. If no additional regular RRSP contributions are made to your RRSP during this time, you will have the same amount of investment in your RRSP in 2017 as you did in 2001.
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