What is Home Buyers' Plan (HBP)?
The Home Buyers' Plan is a Canadian program that lets you withdraw from your RRSPs to buy or build a qualifying home without paying tax on the withdrawal at the time. The amount must be repaid to your RRSPs over a set number of years, and a missed repayment is added to your income.
Why Home Buyers' Plan (HBP) matters
It turns retirement savings into a loan to yourself for a home, which is useful but means those dollars stop growing for retirement until repaid.