Anyone who has purchased a home knows first-hand that the fees associated with the purchase can really add up. Saving up for a down payment is challenging, and costs like legal fees and land transfers can cost you plenty. To help Canadians with the costs associated with purchasing a home, our Conservative Government has introduced the First-Time Home Buyers' Tax Credit.
The First-Time Home Buyers' Tax Credit will allow Canadian to save up to $750 in tax relief on qualifying homes purchased after January 27, 2009.
The First-Time Home Buyers' Tax Credit is also available to existing homeowners who are eligible for the Disability Tax Credit (DTC) who purchase a more accessible or functional home to better suit their needs, or for the benefit of a DTC-eligible person is related to the individual purchasing the home.
Home Buyers' Plan
For many first-time home buyers or builders, saving for a down payment can be the most challenging part, especially during the global recession. To help Canadians afford their first big purchase, our government has raised the amount Canadians can withdraw from their Registered Retirement Savings Plan (RRSP) for a down payment on their first home.
Through Canada's Economic Action Plan, our government is increasing the maximum Canadians can withdraw from the RRSP for a home purchase to $25,000 with respect to withdrawals made after January 27, 2009. The amount must be repaid over a 15-year period, staring the second year of withdrawal limit has been increased since 1992.