Thousands of Canadians have greatly benefited from government incentive programs geared towards helping first-time buyers realize home ownership.

Initiated in the early 1990s, programs such as the RRSP Home Buyers Plan and the 5 Per Cent Down Payment Plan have all made housing more accessible to first-time purchasers.

If you (or your spouse) have not owned a principal residence, you are eligible to participate in the RRSP Home Buyers Plan. Each spouse can withdraw up to $20,000, for a total of $40,000, from their RRSPs under the plan.

Just complete a Form T1036 (available from your Revenue Canada district office) and submit it to your RRSP issuer after signing the agreement of purchase and sale. Once approved, the form gives you permission to withdraw funds from your RRSP without taxes being withheld.

The money you withdraw from your RRSP must be repaid over a period of not more than 15 years to retain your tax deferred status. Payments begin the second year following the year in which the withdrawal is made.

Having trouble saving for a downpayment? The 5 Per Cent Downpayment Plan may be the answer.

Purchasers who can easily afford monthly mortgage payments but are having difficulty accumulating a downpayment may be eligible for financing of up to 95 per cent based on the plan. The property must be used as a principle residence and not exceed a pre-established price ceiling ($250,000 in Toronto).

A maximum total debt ratio of 42 per cent, including mortgage principle, interest, taxes, outstanding loans, and credit cards, exists.