There are some new incentives in the federal budget that aim to help homeowners. The proposed stimulus help:
- First-time buyers
- Those wanting to renovate their home or cottage
- Those first-time buyers using the Homebuyers Plan
What's included?
Homebuyers Plan
The federal budget proposes to increase the withdrawal limit for first-time homebuyers using the Homebuyers Plan from $20,000 to $25,000 (per individual).
Under this program, first-time homebuyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.
First-Time Home Buyers Tax Credit
The Budget proposes a 15 per cent credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.
To assist first-time home buyers with the costs related to the purchase of a home such as legal fees, land transfer taxes, etc.
Home Renovation Tax Credit
The Budget proposes a 15 per cent credit to be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
Will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.
Credit can be claimed on eligible expenditures incurred on one or more of an individuals eligible dwellings, including houses, cottages, and condominium units owned for personal use.
Additional information available at:
http://www.budget.gc.ca/2009/pamphlet-depliant/pamphlet-depliant3-eng.asp