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The Home Buyers' Plan is a program that allows future home buyers to withdraw funds from their RRSPs without being taxed.

You can either :
1.
Withdraw funds from RRSPs that you already have.
Each borrower can withdraw up to $25,000. (If you purchase conjointly, the two buyers are each entitled to $25,000). F.T.Q. RRSPs are admissible, provided that all other regular RRSPs have been used.

2.
Borrow to make an RRSP contribution in order to increase your tax refund.
Depending upon the amounts shown on your most recent Notice of Assessment, you borrow an amount that is deposited into an RRSP for at least 90 days. During this period, you must pay the interest on your loan. After this period, you withdraw the funds and reimburse your loan. This strategy will allow you to receive a tax deduction, thus reducing your taxes.

You have 15 years to repay the entire amount withdrawn from your RRSP under the HBP. In principle, each year, you should pay back 1/15 of the total amount withdrawn. Your first payment is due the second year following the year of withdrawal.

Here are some of the rules to qualify for the program:

• you must not have been an owner-occupant in the last 5 years.
• you cannot enter into a notarized transaction during the 60 days following your RRSP loan. This must be deposited into an RRSP for 90 days.
• you cannot withdraw from an RRSP in 2 different years; the second withdrawal becomes taxable.

Many other rules apply to the HBP program.

For more detailed information, visit the Canada Revenue Agency website.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html