How can I use RRSPs to help buy a home?

If you're a first-time home buyer, the federal government has programs to help, including the Home Buyers' Plan (HBP). This program allows you to withdraw up to $35,000 in RRSP savings ($70,000 for a couple) to help finance your first down payment, and to repay the withdrawn funds within a 15-year period.

Do you already have money saved for your first down payment? It may make good financial sense to apply your down payment through the Home Buyers' Plan — provided you have enough RRSP contribution room for the intended amount. You may receive a tax deduction that could be applied back to repaying the RRSP withdrawal amount, or put towards other home expenses