NEW STIMULUS PACKAGE BENEFITS HOME BUYERS!!  On Tuesday, January 27th, federal Finance Minister Jim Flaherty tabled his 2009 Budget in the House of Commons. As expected, the budget presented a wide-ranging package to stimulate the economy. The following items have a direct impact on home buyers:
1. Home Renovation Tax Credit (HRTC)
This is a 15% non-refundable tax credit for qualifying renovations and improvements of a qualifying home. A credit of up to $1,350 may be claimed.
2. Home Buyers' Plan increases to $25,000 for withdrawals after January 27th.
Currently, first time buyers can withdraw up to $20,000 from their RRSP's. This has been increased to $25,000 with no other changes to the program.
3. First-Time Home Buyers Tax Credit
This tax credit - a $5,000 non-refundable income tax credit amount on a qualifying home. The credit will provide up to $750 in federal tax relief starting in 2009.
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