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Canadian Government Incentives For Home Purchases & Home Renovations

By
Real Estate Agent with RE/MAX Real Estate Centre Inc., Brokerage

Buying, renovating homes key to stimulating economy

The Federal Budget 2009 announced several incentives to get Canadians spending by buying a first time home, or renovating the one they are already in. Some of the budget highlights include:

  • Providing first-time home buyers with additional access to their Registered Retirement Savings Plan savings to purchase or build a home by increasing the Home Buyers' Plan withdrawal limit to $25,000 from $20,000.

  • Assisting first-time home buyers by providing up to $750 in tax relief to help with the purchase of a first home.

  • Implementing a temporary Home Renovation Tax Credit that will provide up to $1,350 in tax relief, reduce the cost of renovations for an estimated 4.6 million Canadian families, and provide needed stimulus to the economy.

  • Providing an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.

For more information about the Federal Government's budget, go to http://www.budget.gc.ca/2009/plan/bpc3c-eng.asp.

Article courtesy Ontario Real Estate Association

Comments(4)

Bob Foster
Century 21 Lanthorn R. E. Ltd. Belleville, Ontario - Belleville, ON

Hi Jenny. I'm in Canada as well, and I welcome these initiatives, but I mut be honest and say that they sound very small compared to some of the things happening down in the US.

Mar 14, 2009 02:39 PM
Brian Belcher
RE/MAX Executive - Charlotte, NC
Charlotte Realtor

Hey, great post. Thanks for the information. It's interesting to see what Canada is doing to stimulate the market.

Mar 14, 2009 02:52 PM
Jenny Kotulak
RE/MAX Real Estate Centre Inc., Brokerage - Oakville, ON
Broker - Oakville Ontario Real Estate

Hi Guys,

You are right Bob.  Our Government has never really dangled many carrots for homebuyers.

 Brian,

As Bob mentioned I guess it is small potatoes compared to the U.S. but fortunately our housing problems are not as big --- yet.

Mar 14, 2009 03:53 PM
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

I always like to read abou the market in Canada.  Our first time buyers tax credits are huge in comparison and they're still sitting on the fence.  Maybe I need to do a blog about just how lucky Americans are to get such a generous contribution. 

Mar 22, 2009 03:33 AM