Once you withdraw your RRSPs you have 15 years to pay it back, with one additional benefit - the first payback year doesn’t start until the second year after you withdraw the money.
For example, let’s say “Daniel” buys a house in June 2022 using money from his RRSPs. He has been checking out his favourite home design sites and thinking about the new place. Once he gets into the house, he realizes there is a lot he wants to do to the space, but he is worried about paying back the HBP right away. The good news is he doesn’t need to start repaying it until 2024, and he can focus on making it the home he wants for the first couple years.
When you want to repay your HBP you will put money in your RRSP account like you used to with one very important difference. It’s critical that you declare the money you repaid on your taxes each year by filling out line 24600 on schedule 7.
You have up to 60 days after the end of the year to make your repayment. This is great news for anyone who is expecting money at the start of the year, like a bonus - but make sure you make that payment on time!