The Home Buyers' Plan (HBP) allows first-time home buyers in Canada to withdraw up to $35,000 from their RRSP tax-free for purchasing or building a home.
Couples can each withdraw $35,000 if both qualify, providing a total potential withdrawal of $70,000.
Repayment of withdrawn funds starts two years after withdrawal, with a 15-year repayment period, requiring 1/15th of the total amount to be repaid annually.
Eligibility requires being a first-time home buyer, having RRSP contributions held for at least 90 days, and intending to use the home as a principal residence within one year of purchase.
Application involves completing Form T1036 and submitting it to the RRSP issuer, followed by using the funds by October 1 of the year after withdrawal.