Ace Your Financial Future with CIFP Practice Exam 2026 – Elevate Your Planning Game!

The RRSP Home Buyers' Plan allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plans (RRSPs) to purchase or build a qualifying home. A townhouse qualifies under the program because it is considered a residential property that is suitable for year-round living.

The key requirement is that the property must be used as the individual's principal residence, which is true for townhouses. Additionally, townhouses are often affordable options for first-time buyers, thus aligning well with the objectives of the Home Buyers' Plan, which is to facilitate homeownership.

In contrast, while a single-family residence, a co-operative housing unit, and a mobile home may also qualify under certain conditions, they do not represent the specific option that is most commonly recognized under the Home Buyers' Plan. Given that a townhouse falls squarely within the guidelines of residential properties recognized by the plan, opting for this choice demonstrates a clear understanding of eligibility criteria for the program.