How to cancel participation in the Home Buyers’ Plan (HBP)

If you withdraw funds from your registered retirement savings plan (RRSP) and otherwise met all the HBP conditions, you generally cannot cancel your participation. However, you may cancel your participation in certain situations.

You can cancel your participation in the HBP only if one of the following situations applies:

• 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 can also cancel your participation if you withdrew funds under the HBP to help a related person with a disability acquire a home, and one of the following situations applies:

• 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

If you choose to cancel and repay to your RRSPs the full amount you withdrew under the HBP, your withdrawal will not be taxed. Any portion of your withdrawal that is not repaid will have to be included in your income on line 12900 of your income tax and benefit return for the year you received the funds. You can make your cancellation payment(s) to any of your existing RRSPs, or a new RRSP for yourself.

Due date to make your cancellation payments

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 did not buy or build a qualifying home or replacement property.

To cancel your participation, do the following:

1. Make a cancellation payment(s) to any of your existing RRSPs, or a new RRSP for yourself by the due date.
2. Send a letter explaining the reason for your cancellation or a completed Form RC471, Home Buyers' Plan (HBP) Cancellation to the CRA. A cancellation letter or the form RC471 must be received by CRA no later than 60 days from December 31st of the year after the year you received the funds. 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
3. Attach your cancellation payment receipt(s) for any repayment(s) to your letter or to a filled out Form RC471.

4. Send the letter or the completed Form RC471, Home Buyers' Plan (HBP) Cancellation to the CRA including your receipt(s) at 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 Section 
   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 Section 
   Winnipeg Tax Centre 
   Post Office Box 14000, Station Main
   Wnnipeg MB  R3C 3M2

   If you choose to cancel your participation and do not make an HBP repayment or a cancellation payments to any of your existing RRSPs, or a new RRSP for yourself, the funds you withdrew that have not been repaid must be included as income on line 12900 of your income tax and benefit return for the year you received the funds.

   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.

Cancellation payments for non-residents

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.

Forms and publications

• Form T1036, Home Buyer's Plan (HBP) Request to Withdraw Funds from an RRSP
• Form RC471, Home Buyers' Plan (HBP) Cancellation