Buying a home is usually the largest investment or purchase a person will make in their lifetime. The Government of Canada acknowledges this and is attempting to lessen the financial burden for first-time home buyers. Canada’s Economic Action Plan offers incentives for first-time homebuyers. The plan introduced the First-Time Home Buyers’ Tax Credit (FTHB) and expands on the Home Buyers’ Plan.
The FTHB Tax Credit recognizes the various costs associated with purchasing a home and provides a $5,000 non-refundable income tax credit amount on a qualifying home. Eligible individuals will receive up to $750 in federal tax relief starting in 2009.
In addition, the Home Buyers’ Plan (HBP) has been expanded, allowing first-time home buyers greater access to their RRSP savings to purchase a home, by increasing the withdrawal limit to $25,000 per person for withdrawals.
For more information, or to find out if you would be eligible for any of these incentives, please visit www.cra.gc.ca.
For any real estate assistance in the Oakville, Burlington, Milton area contact Mary at firstname.lastname@example.org