The Home Buyer’s Plan is a program which permits qualified individuals to withdraw up to $25,000 without penalty from a registered retirement saving plan to be used towards the purchase of a home. The program is limited to first time buyers and non-homeowners. You are considered a first time buyer if, in the previous four year period, you did not occupy a home that you or your current spouse or common law partner owned.
If you buy a new home with a spouse or another individual, each person can withdraw up to $25,000 from his/her RRSP. The funds withdrawn must be paid back within 15 years following a two year grace period.
For complete information, please visit the Canadian Customs and Revenue website (http://cra-arc.gc.ca) and enter a search for Home Buyers Plan.