Home Buyers Plan. The budget proposes to increase the maximum amount that individuals can withdraw, tax-free from their RRSP to put towards the down payment on a home increased from $20,000 to $25,000.
Tax Credit that will help to offset the closing costs associated with housing purchases. The Federal Budget has included a First-Time Home Buyers’ Tax credit of 15 per cent on up to $5,000 of costs associated with the home purchase. Means that a first time buyer could be eligible for a tax credit up to $750.
Federal Budget also includes an initiative that helps current owners by providing a Renovation Tax Credit up to 15 per cent that can be claimed on the portion of eligible home renovations exceeding $1,000, but not more than $10,000, which means that home owners could be eligible for a tax credit of up to $1,350. This credit would apply to eligible home renovations after January 27, 2009 and before February 1, 2010