Saving for a down payment to purchase a home takes time, effort and patience. The minimum down payment is 5% of the purchase price. If you want to avoid mortgage insurance costs you need to save 20% of the purchase price.
An option for home buyers down payment is to use money from their RRSP. Under the Home Buyer Purchase Plan (HBP) each individual can withdrawn up to $25,000.00 from their RRSP without paying the tax on it. For a couple that is $50,000.00. Typically any funds withdrawn from RRSP is taxable. As per the HBP rules the funds withdrawn from the RRSP do have to paid back within 15 years. The year the funds are withdrawn does not count. The borrower can pay back all the funds to the RRSP within 15 years but must meet a minimum requirement each year.