Government of Canada Encourages Home Ownership

Posted Feb. 15th 2012 under General

The Canadian Government is offering home buyers' tax credits and incentives to make home ownership a little bit more afforadable.

First-time Home Buyers' Tax Credit
Budget 2009 proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.
For full information, visit http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp#3

The Home Renovation Tax Credit
Budget 2009 also proposes to implement a temporary 15% Home Renovation Tax Credit (HRTC) to provide some $3 billion in tax relief to an estimated 4.6 million Canadian families. The HRTC will encourage investments in Canada's housing stock, provide employment for trades people and boost sales for those who make and sell building products.
For more information on the HRTC contact Canada Revenue Agency: www.cra.gc.ca

Home Buyers' Plan Enhanced
The government has earmarked $15 million to nudge Canadians with RRSP's into buying homes. Now homebuyers can withdraw $25,000 tax-free from their RRSP to buy or build a first home - up from $20,000.
For more information visit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html