How long do participants have to repay the Home Buyer's Plan loan?

The Home Buyer's Plan (HBP) allows eligible first-time homebuyers to withdraw money from their Registered Retirement Savings Plan (RRSP) to help purchase or build a qualifying home. Participants in the program must repay the funds into their RRSP within a specific timeframe, which is set at 15 years.

This repayment period is structured to ensure that participants are not permanently forgoing their retirement savings and encourages them to return the funds over a manageable period. Each year, participants must repay a minimum amount until the full withdrawn amount is returned to the RRSP. Failing to make the required repayment can result in the amount not repaid being included in the participant’s income for that year, which can have tax implications.

The options of 10 years, 20 years, and no repayment required do not align with the established guidelines of the Home Buyer's Plan, making 15 years the correct and relevant answer.