The Home Buyers’ Plan allows first time homeowners to withdraw up to $20,000 per person from their RRSP to be used as the down payment for their home. If you and your spouse, common-law partner, or other individual, are purchasing the home together, each person can withdraw up to the $20,000 maximum from his/her RRSP.
Essentially, the benefits of purchasing a house with the money in your RRSP are the tax benefits. For example: if you and your spouse both have been contributing to your RRSP, you would have received tax refunds. After contributing to your RRSP, you have decided to purchase a home. This being a first home for both of you, you are able to apply for the Home Buyers’ Plan (HBP). The HBP defers the taxes on cashing in your RRSP over the next 15 years, which has a number of cost-effective advantages.
One benefit is that repayment is as low as $1,333.33 per person per year, of the maximum $20,000 per person withdrawn.
Note that you will not be able to reap the tax refund again for repayment amounts, however topping up your RRSPs with each repayment can increase your tax refund allowing you to use the money on renovating your home, like a new roof, deck or landscaping.