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Federal Budget Announcements

Created: 28 January 2009
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Canada's Mortgage Industry Happy with Federal Budget Announcements

January 27th 2009 - The federal government made several changes affecting Canadian homeowners and purchasers positively:

The New Home renovation tax credit:

Homeowners can now claim a non-refundable 15% tax credit on qualified 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 great than $1,000, but to a 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 Increase:

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

New First-time home buyers' tax credit:

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

For more information about the new changes, please call me at 604 649-5991 Jared Dreyer, Accredited Mortgage Professional.