28 January 2009

Home renovation tax credit:

Homeowners can claim a non-refundable 15% tax credit on eligible home renovation costs incurred and paid after January 27, 2009, and before February 1, 2010, under agreements entered into after January 27, 2009.

The tax credit is available on expenses exceeding $1,000, but a maximum of $10,000 of expenses qualify per family unit, so that the maximum credit will be $1,350 (i.e., $9,000 x 15%).

Home Buyers' Plan:

Commencing January 28, 2009, first-time home buyers can withdraw $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home, without incurring tax. Previously, the limit was $20,000.

First-time home buyers' tax credit:

First-time home buyers that purchase a qualifying home after January 27, 2009, can claim a 15% non-refundable tax credit on up to $5,000, for a maximum rebate of $750. If the home is purchased jointly, the total credit that may be claimed by all parties is $750. The unused portion of the credit can be transferred to a spouse or common-law partner.

· Broad based personal tax reductions including an increase in the personal exemption and increases to the limits for the two lowest tax brackets

The Canadian Association of Accredited Mortgage Professionals (CAAMP) President and CEO Jim Murphy was present as part of the pre-budget lock up.

For more information on today's federal budget reading - click here

Any questions call Jared Dreyer, Accredited Mortgage Professional 604 649-5991. Member of CAAMP and VERICO National Advisory Board