The Home Buyers’ Plan (HBP) is a government program that allows first time home buyers to withdraw up to $25,000 from their registered retirement savings plan (RRSPs) to buy or build a home. The home must be used as a principle residence, and all funds must be withdrawn from the RRSP within 30 days of the property’s closing date.
Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.
Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.