Well, with the billions of dollars being thrown around in both the US and Canada these days, a tax credit doesn't seem like much, does it?

However, for those buying their first home, the credit, based on $5,000, will certainly come in handy, though not when you're actually buying the home. My understanding is that it works out to about $750 in actual tax relief, which of course, doesn't even cover legal costs.

As for the increase in allowable withdrawals from your RRSP from $20,000 to $25,000, how many first time buyers have you met who even have that much saved yet?

Can anyone explain how this thing works because if you read the government release below, I think you have to be an accountant to "get it". I'm just a poor journalist/agent/consumer.

Here's the link to Canada's Economic Action Plan page with further details on both the Home Buyers Plan and the First Time Home Buyers Tax Credit :http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp#Personal

Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.