What is one purpose of the Home Buyer's Plan?

The Home Buyer's Plan (HBP) is designed specifically to assist first-time homebuyers in Canada. Under this program, eligible individuals can withdraw funds from their Registered Retirement Savings Plans (RRSPs) to put toward purchasing or building a qualifying home. This initiative aims to make homeownership more accessible for those who may struggle to save enough for a down payment, thus facilitating the transition into homeownership for first-time buyers.

The program creates an opportunity for individuals to utilize their retirement savings, which can significantly aid them in overcoming financial barriers to purchasing a home. By allowing tax-free withdrawals for this purpose, the HBP encourages saving and investing in homeownership, directly benefiting first-time buyers looking to take that important step in their lives.

The other options do not accurately represent the primary focus of the HBP. For instance, promoting home renovation is not a goal of this program, nor does it aim to increase rental properties or decrease mortgage rates. Instead, its singular aim is to ease the financial load for new buyers entering the housing market.