What tax benefit does the Home Buyer's Plan provide?

The Home Buyer's Plan (HBP) specifically allows first-time home buyers to withdraw funds from their Registered Retirement Savings Plans (RRSPs) without incurring immediate taxes. This tax-free borrowing is designed to assist individuals in accumulating the funds necessary for a down payment on their first home. The amounts withdrawn must be repaid into the RRSPs within a specified time frame, but during the withdrawal process, there are no tax implications.

Other options do not accurately represent the HBP's provisions. For instance, while a tax credit for new home purchases or a tax deduction on mortgage interest may seem beneficial, they are not features of this specific program. Similarly, a tax exemption for property sales may apply in different contexts but is not part of the Home Buyer's Plan. Thus, the option highlighting tax-free borrowing from RRSPs is the key benefit of the HBP, making it the correct answer.