Everything you need to know about the HBP

If you are eligible, the Home Buyers' Plan (HBP) can help you become a homeowner. Thanks to the HBP, you can withdraw up to $20,000, tax free, from your RRSP to put toward buying a home that will serve as your principal residence. The home, which can be of different types, must be located in Canada. This withdrawal is subject to several conditions, e.g. the amount (without interest) must be repaid to the RRSP within a maximum of 15 years. Of course, there are several other conditions that also apply. Tempting, isn't it? But you must consider all of the financial and tax implications of the HBP, because there are definitely pros and cons.