What happens if you withdraw RRSP under first-time HBP? Do you have to pay tax?
No, the taxpayer does not have to pay tax in the same year of RRSP withdrawal under HBP. They will receive a T4RSP that shows the withdrawal in Box 27. They have to start contributing RRSP and designating part as repayment for RRSP after two years of the first withdrawal.
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