Cancelling your participation

You can cancel your participation in the HBP if you have met all the applicable HBP conditions except for one of the following:

• you did not buy or build a qualifying home or replacement property; or
• you became a non-resident before buying or building a qualifying home or a replacement property.

You can also cancel your participation, if you withdrew funds under the HBP to help a related person with a disability acquire a home, and:

• that person does not buy or build a qualifying home or replacement property; or
• you become a non-resident before that person buys or builds a qualifying home or a replacement property.

If either of these situations applies to you, complete the cancellation form.

Note
If you make a withdrawal from your RRSP and meet all applicable HBP conditions, you cannot cancel your participation.

If you repay to your RRSPs the full amount you withdrew under the HBP, you will not be taxed on your withdrawal. Any portion of your withdrawal that is not repaid will have to be included in your income for the year you received the funds.

You can make your cancellation payments to any of your RRSPs or to a new RRSP, with any issuer.

Due date for making cancellation payments

If you cancel your participation because a qualifying home or replacement property was not bought or built, your cancellation payments are due by December 31 of the year after the year you received the funds.

If you cancel your participation because you became a non resident before a qualifying home or replacement property was bought or built, your due date will depend on when you became a non-resident. If you were a non resident at the time you filed a return for the year you received the funds, your cancellation payments are due by the earlier of the following two dates:

• December 31 of the year after the year you received the funds; or
• the day you filed a return for the year you received the funds.

In all other situations, your cancellation payments are due by December 31 of the year after the year you received the funds.

How to cancel your participation

To cancel your participation in the HBP and choose to repay all the money you took out of your RRSP, follow these steps:

1. Repay the withdrawal to your RRSP by December 31 of the year after the year of withdrawal.
2. Complete the Home Buyers' Plan (HBP) - Cancellation form.
3. Attach your official RRSP receipt for the repayments to the cancellation form.
4. Send both the receipt and the cancellation form to us at the address on the form.

To cancel your participation in the HBP and choose not to repay some or all of the money you took out of your RRSP, follow these steps:

1. Repay the part of the withdrawal to your RRSP by December 31 of the year after the year of withdrawal.
2. Complete the Home Buyers' Plan (HBP) - Cancellation form.
3. Attach your official RRSP receipt for any repayments you made to the cancellation form.
4. Send both the receipt (for any amount repaid) and the cancellation form to us at the address on the form.
5. Enter the amount you did not repay on line 129 of your return for the year you withdraw the funds.

Example
Jason and his spouse Karen each completed Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP, on April 10, 2010, to withdraw amounts from their RRSPs under the HBP. Jason withdrew $12,000 from his RRSPs and Karen withdrew $14,000 from her RRSPs. They had entered into a written agreement on March 20, 2010, to buy a qualifying home on September 12, 2010.

In August 2010, Jason and Karen decided not to buy the home and to cancel their participation in the HBP. Jason repaid $12,000 to one of his RRSPs by December 31, 2011. He completes the cancellation form and sends it to us with all copies of his official RRSP receipts.

Karen chose to repay to her RRSP only $8,000 of the $14,000 withdrawal she made under the HBP. She repaid this amount by December 31, 2011. She also completes the cancellation form and sends it to us with all copies of her official RRSP receipts so we can cancel that part of her HBP participation. Karen has to report $6,000 as income on her 2010 tax return, because she did not repay these funds to her RRSP.

Forms and publications

• Guide RC4135, Home Buyers' Plan (HBP)