Finance Minister Jim Flaherty announced some good news for home buyers and home owners today:
- a home renovation tax credit worth up to $1350
- an increase in the RRSP withdrawal limit for a home purchase, now a maximum of $25,000
- a non-refundable income tax credit for first-time buyers worth up to $750
- more money available for energy-efficient home improvements
This is especially good news for buyers who have been sitting on the fence – two first-time buyers with healthy RRSP accounts now have another $10,000 they can bring to the table to purchase a home plus they can obtain a first-time buyers’ income tax credit. Once they move in they may be able to get a home renovation credit and/or get funds from the ecoEnergy Retrofit program. It all adds up! And if a lot of people decide that these incentives mean it now makes sense for them to purchase, it could add up to good news for sellers as well, as more buyers enter the marketplace.
The Heart of this Budget is at Home
The budget’s focus on on home ownership is capped off by an announcement that the government plans to expand the amount of money available through its ecoEnergy Retrofit proram, which provides grants of up to $5,000 to offset the cost of making energy-efficient home improvements. Tip: Find a project that qualifies for the ecoEnergy program and then claim the home-renovation tax credit as well.
GlobeandMail.com Jan 27 2009
