If you were to withdraw funds from your Registered Retirement Savings Plan (RRSP) without having it be for an approved program such as the First Time Home Buyers Plan or the Lifelong Learning Plan you would consider those withdrawn funds as income and have to pay the appropriate tax. However, withdrawing funds for your first home from your RRSP falls under the Home Buyer’s Plan it is essentially a loan from your retirement, that you are required to repay over the next 15 years.

One of the reasons you would consider using the HBP to withdraw funds from your RRSP is to allow you to put more than 20% down on your mortgage as a down payment.  The savings from not requiring CMHC Insurance (which is required if you put less than 20% down payment) can be significant and as long as the repayment of the RRSP is a priority, you can easily save yourself thousands of dollars over time.  

There are provincial tax credits that are associated with buying a home, and some require the use of the Home Buyers Plan, while others are not contingent on utilizing the homeowners RRSP and the Home Buyers Plan.