Here is a re-cap of 3 Government actions to stimulate the housing industry in Canada...

1. The 2009 budget proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009. You are considered a first time home buyer if neither you nor you spouse or common law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

2. The Home Renovation Tax Credit - the budget proposes to implement a temporary 15% home renovation tax credit to provide some 3 billion in tax relief to an estimate 4.6 million Canadian families. The tax credit will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The 15% tax credit may be claimed on the portion of eligible expenditures exceeding $1,000 but not more than $10,000 and will provide up to $1,350 in tax relief.

3. Home Buyer's Plan Enhanced - Homebuyers can withdraw $25,000 tax free from ther RRSP to buy or build a first home - up from $20,000.

And lastly, but not part of these incentives, is the lowering of interest rates by the Bank of Canada which seems to be having the largest immediate impact on those seeking to purchase a home. The prime lending rate now stands at a 50 year low of 2.50% which is a boom to those seeking to purchase or refinance existing loans. Coupled with plentiful inventory, motivated Sellers and reasonable prices this has created the best market in well over a decade to people to enter the housing market.