Buying a home can get expensive. After all, a home is a large purchase, and if you want to avoid hassles and difficulties, you need to come up with a down payment of at least 20%. While some Canadian lenders have been accepting less, most home-buyers are better served by coming up with a large down payment.

But how do you come up with that down payment? With home prices still rising in many areas, coming up with 20% can seem insurmountable. That’s a large chunk of capital. The answer to this difficulty might be the Home Buyers Plan.

The Home Buyers Plan also known as HBP is a program that allows you to withdraw from your RRSP. You can withdraw up to $25,000 per year to buy or build a home. In order to take advantage of this you must be considered a first-time home-buyer and intend to occupy the home as your principal place of residence.

A certified financial planner can help you understand this type of withdrawal, it’s payback schedule, further details on how to qualify and if it’s the right option for you.

home buyers plan