New Federal Budget affects homeowners

The January 27th federal budget brought forth change for homeowners and first-time home buyers. Here are 2 two highlights that will be useful for many first-time Buyers:

• RRSP Home Buyers’ Plan Increase The budget proposes a $5,000 increase to the RRSP Home Buyers’ Plan, First-time home buyers will be able to withdraw up to $25,000 from their RRSP's for a down payment – tax- and interest-free!!
• Tax Credit for First-Time Home buyers Also proposed is a $750 tax credit for first-time home buyers to help with closing costs, ie: legal fees, disbursements and land transfer taxes. The tax credit will be based on an amount of $5,000 for first-time purchasers who buy a principal residence home. Credit for the tax year will be based on the lowest personal income tax rate for the year and is claimable for the tax year in which the home is purchased.

First Time Buyer questions? Call me.