A federal government program that allows first-time homebuyers in Canada to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) — tax-free — to purchase or build a qualifying home. Couples can each access up to $35,000 for a combined maximum of $70,000. The withdrawn funds must be repaid to the RRSP over 15 years beginning two years after withdrawal. Failure to repay the annual amount results in that portion being added to taxable income for the year.
Synonyms:
HBP|RRSP Home Buyers Plan