Federal budget has housing market in mind

Tax credits available for renovations, first-time homebuyers

Real Estate Bulletin

The 2009 Federal Budget offers up several financial breaks for first-time homebuyers and home-owners looking to improve the value of their homes through renovations.

First-time buyers could see sav-ings of up to $750 to alleviate closing costs by way of a $5,000 non-refundable income-tax credit on a qualifying home purchased after Jan. 27, 2009.

This is welcome news for pro-spective real estate clients debat-ing whether they should wait for better financial times.

Coupled with the Province of Ontario's rebate of up to $2,000 for Land Transfer Tax for first-time homebuyers, potential sav-ings are substantial.

In a further effort to stimulate the housing market, the proposed budget offers to increase by $5,000 the maximum amount first-time homebuyers can withdraw from their RRSPs.

Under the Home Buyers' Plan, $25,000 can now be withdrawn, up from $20,000, with the stipula-tion the money be repaid over a 15-year period, beginning in the second year after it is withdrawn.

The budget also contains some-thing for prospective sellers: A Home Renovation Tax Credit-a one-year, temporary 15 per cent income tax credit on eligible home renovation expenditures for work performed or goods ac-quired between Jan. 27, 2009 and Feb. 1, 2010.

A credit may be claimed on eli-gible expenditures exceeding $1,000 but no more than $10,000, putting up to $1,350 back in the homeowners' pockets.

This provides a great opportunity for sellers deciding if they should spend money to complete a few renovations in order to make their homes more attractive to potential buyers.

If you have any questions, please do not hesitate to contact me.

Above info provided by :


2888 St. Joseph Blvd.

Orleans, ON

K1C 1G7

Tel: 613.834.4800

Fax: 613.834.4828

TF: 877-834-4855


February 2009




Stephen George

Stephen George

CENTURY 21 Action Power Team Ltd., Brokerage*
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