First Time Buyers Get Tax Relief !! Did You Know That?

Buying Your First Home - Tax Relief
Tax Credits for First Time Home Buyers

 Well first time buyers, here it is !!!  There is some great news for those of you thinking about purchasing a home ! If you have any questions, please email me and I will do my best to answer them  but here is the key points  !     Thinking of renovating, now is the time as well. Read on.

As well, first-time buyers would be able to make greater use of the federal Home Buyers’ Plan, which allows tax-free withdrawals from registered retirement savings plans for the purpose of buying a first home. The new withdrawal limit would be $25,000, up from $20,000.

So what are you waiting for ! Mortgage rates are at an all time low, homes are plentiful and the choice is all yours !!! Let me help you get into your first home !

Contact Michelle Makos, RE/MAX First Realty Ltd. today and get started. 416-300-3004 or email me at

Homebuyers’ Plan

• The federal budget proposes to increase the withdrawal limit for first-time homebuyers using the Homebuyers Plan from $20,000 to $25,000 (per individual).

• Under this program, first-time homebuyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.

• Since 1992, an estimated 2 million Canadians have used the Home Buyers’ Plan to purchase approximately 900,000 homes, making this program a huge success. Unfortunately, as time has passed, the usefulness of this program eroded because withdrawal limits were not adjusted. For this reason, REALTORS® lobbied the federal government to increase the Home Buyers’ Plan withdrawal limit to $25,000.

First-Time Home Buyers’ Tax Credit

• To assist first-time home buyers with the costs related to the purchase of a home such as legal fees, land transfer taxes, etc.

Home Renovation Tax Credit

• The Budget proposes a 15 per cent credit to be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.

• Will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.

• Credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings, including houses, cottages, and condominium units owned for personal use.

The Budget proposes a 15 per cent credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.

Rookies in the housing market benefit from a couple of budget measures, the first being a First-Time Home Buyers’ Tax Credit designed to help defray such costs as legal fees and land-transfer taxes. For homes bought after Jan. 27, a 15-per-cent tax credit would apply on expenditures of up to $5,000, which would mean maximum tax savings of $750.

For more information on how to get into your first home and use your tax benefits, give me a call !!  I would be happy to assist you and point in the direction of the professionals that can make your home buying dreams come true !!