The Home Buyers' Plan (HBP) allows you to withdraw money from your Registered Retirement Savings Plan (RRSP) tax-free to use for a down payment.
You must meet certain conditions to be eligible for the HBP. For more information, contact the Canada Revenue Agency (CRA).
In 2013, Martin withdraws $15,000 from his RRSP to participate in the HBP to buy a home. Martin's minimum yearly repayment to his RRSP, starting in 2015 (two years after purchase), will be $1,000 ($15,000 ÷ 15 years).
If Martin decides not to make any reimbursement in 2015, he will have to include $1,000 in his income when he files his 2015 income tax return. His minimum yearly HBP repayment, however, will remain at $1,000 for the following years.
On the other hand, if Martin decides to make a HBP reimbursement of $3,000 to his RRSP in 2015, his minimum yearly repayment for 2016 and the following years will be $857.14 ([$15,000 - $3,000] ÷ 14 years).