what is a home buyers plan The Home Buyers’ Plan (HBP) is a program in Canada that allows first-time homebuyers to withdraw up to $35,000 from their registered retirement savings plan (RRSP) to use as a down payment on a home. The HBP helps first-time homebuyers to save money for their down payment while still being able to save for retirement. To be eligible for the HBP, the individual must be a first-time homebuyer, or have not owned a home in the previous four years. They must also have a written agreement to buy or build a qualifying home, and must intend to use the home as their principal residence within one year of purchase or completion. Repayments of the withdrawn funds must begin in the second year following the year of withdrawal and be completed within 15 years. If the repayments are not made as scheduled, they will be added to the individual’s income for tax purposes. It’s important to note that while the HBP can help first-time homebuyers with their down payment, it’s important to consider the long-term impact of withdrawing funds from an RRSP, as this can affect their retirement savings. It’s recommended that individuals speak with a financial advisor before making any decisions about using the HBP.