The Home Buyers' Plan lets a first-time home buyer withdraw up to $60,000 from their RRSP — $120,000 for a couple — to use toward a down payment, without triggering immediate tax. The withdrawal must be repaid to the RRSP over 15 years, starting the second year after withdrawal.
Eligibility: must be a Canadian resident, have a written agreement to buy or build a qualifying home, intend to occupy it as your principal residence within one year, and not have owned a home in the past 4 calendar years (same rule as FHSA).
The mechanics: 1. Withdraw up to $60,000 from your RRSP. The withdrawal isn't taxed in the year you take it. 2. Buy or build your qualifying home. 3. Starting in year 2 after the withdrawal, the CRA expects you to repay 1/15 of the amount each year. 4. Missed repayments are added to your taxable income for that year (so you pay regular tax on them).
FHSA vs HBP: the FHSA is strictly better for new first-time savings (the contribution is deductible and withdrawal is tax-free and there's no repayment). The HBP shines when you've already built up RRSP balances over years and want to unlock them without the immediate tax hit.
Combining them: yes, you can use both for the same home purchase. Most couples first drain their FHSAs (no repayment ever), then use the HBP on top.