How do first-time home buyers benefit from the "Home Buyers' Plan"?

First-time home buyers benefit significantly from the "Home Buyers' Plan" because it allows them to withdraw tax-free funds from their Registered Retirement Savings Plan (RRSP) to help with their down payment. This plan enables individuals to withdraw up to a specified limit (currently $35,000) from their RRSP without incurring tax penalties, provided that the funds are used to purchase a qualifying home. This is particularly beneficial for first-time buyers who may struggle to save for a down payment, as it allows them to access their retirement savings without fiscal penalties, thereby making homeownership more attainable.

The other options do not represent the provisions of the Home Buyers' Plan. For instance, while some programs offer interest-free loans, the Home Buyers' Plan specifically pertains to RRSP withdrawals. Additionally, it does not exempt buyers from mortgage insurance fees, nor does it provide government grants for closing costs. Understanding the features of the Home Buyers' Plan is essential for first-time buyers to make informed financial decisions as they strive to purchase their new home.