The federal budget proposes to increase the withdrawl limit for first-time buyers using the Home Buyer's Plan from $20,000 to $25,000 (per individual).
Under this program, first-time buyers 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 Amounts withdrawn under the HBP must be repaid over a 15 year period, starting the second year following the year of the withdrawl.
First-Time Buyer's Tax Credit
The budget proposes a 15% 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.
First-Time Buyer's Land Transfer Tax Credit
First-Time buyers will be given a rebate of up to $2,000 on the Land Transfer Tax.
This rebate is available to those who buy both new construction and resale homes.
Home Renovation Tax Credit
The budget proposes a 15% credit to be claimed on the portion of eligble home renovation expenditure exceeding $1,000, but not more than $10,000. The maximum credit that can be received is $1,350.
For more information on any of these incentive programs please call (905) 619-9500, send an e-mail to LindsayH@sutton.com or fill out the form below.
