If you qualify as a first-time home buyer, Registered Retirement Savings Plans (RRSPs) can help you get money for a down payment for a home.

The Canadian Government's Home Buyers' Plan (HBP) allows both you and your spouse or partner to each withdraw $20,000 - or a total of $40,000 - from your RRSPs for a down payment, or to cover other costs of buying or building a home.

The amount you withdraw is considered a loan and is tax-free, provided you repay the money within a 15-year period starting the third year after the withdrawal. The minimal annual repayment on each $20,000 withdrawal is $1,333. If you repay less than the minimum in any particular year, the balance is added to your taxable income.

The HBP also will let you borrow funds, put them into your RRSP and use your tax refund toward a down payment. You contribute the borrowed money to an RRSP. After 90 days, the RRSP is collapsed and the loan is repaid. You receive a tax refund that you can then use as part of a down payment.

The RRSP offers an excellent source for funds to help you buy your dream home.