First Time Home Buyers Grants

The First Time Home Buyers Grants are proposed tax credits for Canadians.

As Realtors, we have an obligation to our Client Sellers and Buyers to lobby their best interests on the National scale.

Under the direction of Canadian Real Estate Association, Realtros form coast to coast continue to play a key role in persuading the Federal Government to move forward with special incentives that will allow more Canadians to own a home.

Federal Budget 2009 offers following First Time Home Buyers Grants:

A $5000 increase to the RRSP Home Buyers Plan, meaning first-time home buyers can now withdraw up to $25,000 from their RRSPs for a down payment tax and interest-free!

A $750 tax credit for first-time home buyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.

A 15% tax credit of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010.

$300 million for ecoENERGY Retrofit grants.

Up to $50 billion worth of additional mortgage buybacks. The government called this a "successful program" that "will reassure lenders that stable long-term financing will continue to be available..."

More "disclosures" for mortgage insurance designed to "help consumers better understand the mortgage insurance transaction. The Government will also propose new measures to ensure that Canadian consumers are charged no more for mortgage insurance than the true cost of obtaining that insurance."

RRSP Home Buyers’ Plan

One many other First Time Home Buyers Grants introduced by our Government is Home Buyer's Plan. Since introduction of the program in 1992, an estimated 2 million people have borrowed more than $15 billion of their own savings from RRSPs to purchase a home.

Under Home Buyers' Home Plan, first-time home buyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. The money withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.

This year's Federal Budget allows for an increase to the withdrawal limit for first-time home buyers using the Home Buyer's Plan from $20,000 to $25,000/per individual. This is a great news for the First time buyers. Find out more here.

First-Time Home Buyers’ Tax Credit

First Time Home Buyers grants 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 of the first time home purchases.

This is to assist Ontario first time home buyers with the costs related to the purchase of a home, like legal fees, land transfer taxes, etc. Find out more here.

Home Renovation Tax Credit

Federal Budget 2009 offers 15% credit on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000. That makes the maximum tax credit amount: $1,350.

Offer applies to the eligible home renovation cost for goods and services associated with the renovation, after January 27, 2009 and before February 1, 2010, and 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. Find out more here.

ecoENERGY Retrofit for Homes

This program provides home and property owners with grants of up to $5,000 to offset the cost of making energy-efficiency improvements.

ecoENERGY Retrofit grants apply to a host of measures that reduce energy consumption and provide for a cleaner environment, from increasing insulation to upgrading a furnace. Find out more here.

Ontario Land Transfer Tax (PLTT) Rebate Program

First-time home buyers who purchase a newly constructed home will receive a rebate of the Provincial Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum Provincial LTT rebate is $2,000. Find out more here.

Additional Information

If you wish to find out more about the latest developments on First Time Home Buyers Grants and programs available to Canadian home buyers, please go to this Government site.

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Joanna Gerber is a Professional Member or is associated with the following Organizations: