The Home Buyers’ Plan (HBP), a program offered by the Government of Canada, is designed to help Canadians with making the big move of purchasing their first home. The program allows RRSP account holders to withdraw money out of their account tax-free when the proceeds are used towards purchasing a qualifying home. From the time you withdraw the funds, you have up to 15 years to pay it back. Repayments begin in the second year after the year in which you withdraw the funds.
Unless you have disability (or helping a relative who has one) to buy or build a home, you have to be a first-time home buyer to qualify for this program. To be considered as a first-time home buyer, you must have not owned a home for the most recent 4 year period as your principal residence. Each qualified spouse can withdraw up to $35,000 from his or her RRSP, tax-free.