I would add $5,000 to 2019 return. That is what CRA asked for, and that means the previous years taxes will be somewhat lower with less interest and penalty as a result.
On a few occasions, some of my clients had erroneous information for Represent A Client portal.
I would first find out what was his HBP balance owing and HBP repayment amount for the earliest year he didn’t file.
Then complete the RRSP Worksheet for the oldest non-filed return. Then carry it forward to the next year. Repeat for each year.
TaxCycle will calculate the remaining HBP balance owing for each year.
I just had a client with a similar situation. Yes, CRA showed the full amount HBP owing in 2019, however
as suggested by both Joe and Taxwave, I broke the amount owing down by years and claimed the appropriate amount for each year. CRA processed the returns correctly. As stated by Joe, I believe this is the correct way to do this.