In one of the most anticipated budgets in Canadian history the Harper Government made good on its promise. Finance Minister Jim Flaherty toned down on their first attempt at a budget, and followed the guidelines set out by the G20 to spend heavily and provide tax cuts to help spur on the economy. Did they do enough? We’ll see over the next 12 months.
However, one thing is for sure - their commitment to improve the housing market is at the forefront of this budget. Here are some highlights
· Home Renovation Credit – Up to $1350 tax credit for renovation spending from $1,000 to $10,000 (This is a temporary credit until February 1st, 2010)
o This credit can be doubled if the renovation qualifies under the ECOEnergy Retrofit Program or the Medical Expense Tax Credit
· First Time Home Buyer Credit – 15% non refundable tax credit for up to $750
· Home Buyer’s Plan Increase – An increase of $5000 to the Home Buyer’s Plan now allows for a withdrawal of $25000
· Mortgage Buybacks – Government will purchase an additional $50 Billion in insured mortgages
These measures should help the growing housing market in Canada. Now the test will be whether or not the Ignatieff led Liberals will accept and pass the budget next week. The Bloc Quebecois and NDP have already said they plan to oppose the budget.
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