With interest rates the lowest they have ever been and all that the government is offering, if you are able to afford a home, now is the time to buy one! Below is a summary of the incentives that are being offered by the government, contact me to discuss what it would cost to own vs. rent in today’s market….invest in real estate while the opportunity knocks louder than ever before!
Land Transfer Tax Refunds
For First-Time Homebuyers
The amount of the refund claimed will, if granted, offset the land transfer tax payable. The
maximum amount refundable is $2,000.
Examples:
Cost of Home         Tax Payable         Tax Refund         Net Tax Payable
$100,000                   $725                 $725                            $0
$200,000                $1,725              $1,725                            $0
$300,000                $2,975              $2,000                        $975
for more information:   http://www.rev.gov.on.ca/english/bulletins/ltt/1_2008.html

First-Time Home Buyers’ Tax Credit
The First-Time Home Buyers’ Tax Credit (the “FTHBC”) is a new non-refundable tax credit based on an amount of $5,000, and will be available to first-time home buyers who complete a purchase of a home after January 27, 2009. The FTHBC will be calculated by reference to the lowest personal income tax rate for the year and can be claimed for the taxation year in which the home is acquired. The Budget also proposed that the FTHBC be available for purchases by, or for the benefit of, a person eligible for the disability tax credit.
For more information contact: Service Canada at 1-800-662-6232 or visit www.fin.gc.ca

Home Buyer’s Program (HBP)
The HBP is a program that allows you to withdraw up to $20,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home.
http://www.cra-arc.gc.ca/E/pub/tg/rc4135/README.html

Home Renovation Tax Credit
The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
http://www.actionplan.gc.ca/phamphlet-eng.html

CMHC assistance programs for renovations
CMHC offers a variety of programs for low income families and/or seniors planning on having minor renovations done on their home.
http://www.cmhc.ca/en/co/prfinas/index.cfm

The COOL SAVINGS REBATE Program runs from January 1, 2009 through to December 31, 2009. Rebates are available for residents and businesses (with residential-type systems) of Ontario who work with a participating contractor to:
   1. Replace an existing Central Air Conditioning (CAC) system with one that meets or exceeds the ENERGY STAR® standard for CAC systems
   2. Replace an existing furnace with a mid or high efficiency furnace or air handler with a fully variable speed electronically commutated motor (ECM)
   3. Replace an existing non-programmable thermostat with a programmable thermostat
For more information go to: http://everykilowattcounts.ca/residential/coolsavings/rebate-details.php


Federal Government is developing additional grants for people who are improving the efficiency of their homes. For more information view: http://oee.nrcan.gc.ca/residential/personal/home-improvement.cfm



 

 

 

 

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