If you are first Time Buyer,

The federal budget contains good news for first-time buyers and homeowners. These are encouraging development contained in the budget.

First time buyers that purchase property after January 17, 2009, are to receive a tax credit of $750 when they file their income tax return. To assist first-time home buyers with the cost associated with the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit- a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.
Access for first time buyers to $25,000.00 from their Registered Retirement Savings Plan to purchase or build a home- This is an increase from the previous $20,000.00 level. Amounts withdrawn under the BHP must be repaid over a 15 year period starting, starting the second year following the year of the withdrawal, or included in the individual’s income if a repayment is not made.


There are other positive developments which have occurred previously:

The Ontario government continues to offer a $2,000 reduction in Land Transfer Tax for first-time buyers. The City of Toronto exempts first-time buyers from its newly imposed Land Transfer Tax

Interest rates are at  historic lows.

It is clear that federal government is committed to helping Canadians become homeowners. The importance of the construction industry and benefits generated is recognized in this budget. These measures will help to instill confidence in the housing market.

Also for all home owners,

A temporary Home Renovation Tax Credit that will provide up to $1,350 in tax relief, for renovations. Building suppliers are offering additional savings in the form of discounts of as much as ten per cent. The amount spent must exceed $1,000.00 and not be greater than $10,000.00.

The amount of tax relief depends upon how much has been spent. Eligible expenditures include decks, driveways, new flooring, interior and exterior painting, new furnace, sod.

Allocation of $300 million over two years to the ecoENERGY Retrofit program to support a home retrofit- The ecoENERGY Retrofit program provides home and property owners with grants of up to $5,000 to offset the costs of making energy-efficiency improvement. Grants apply to a variety of measures that reduce energy consumption from increasing insulation to upgrading a furnace.

Low cost interest loans from the federal government to the municipalities for the purposes of constructing infrastructure- This new source of funds will allow municipalities to invest in municipal housing-related infrastructure projects such as sewers, water lines, and neighbourhood regeneration projects, thus contributing to healthier, safer and modern communities for Canadian and their families.