Reprinted from CMHC website:
Buying your first home is one of the largest investments of your life. Canada's Economic Action Plan introduces the First-Time Home Buyers' (FTHB) Tax Credit and the expansion of the Home Buyers' Plan (HBP) to provide you with additional benefits and help you realize your dream of homeownership.
First-Time Home Buyers' (FTHB) tax credit
The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual,* the credit will provide up to $750 in federal tax relief starting in 2009.
Expansion of the home buyers' plan
To provide first-time homebuyers with greater access to their RRSP savings to purchase or build a home, the Government of Canada has increased the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000 per person for withdrawals made after January 27, 2009.
Looking for more homebuying information?
When it comes to buying your home, nothing is more valuable than peace of mind. That’s why for more than 70 years, Canada Mortgage and Housing Corporation (CMHC) has shared a wealth of knowledge and housing expertise to contribute to a positive homeownership experience for Canadians. Visit www.cmhc.ca today, and browse through our wealth of homebuying information. You’ll find everything you need, from homebuying videos, to mortgage calculators, to home hunting worksheets.
CMHC also provides mortgage loan insurance that enables you to buy a home with a minimum down payment starting at 5% — with interest rates comparable to those with a 20% down payment. Ask your mortgage professional about CMHC.
To obtain more information on the First-Time Home Buyers’ Tax Credit and the Home Buyers’ Plan, call 1-800-O-Canada or visit the Canada Revenue Agency website at www.cra.gc.ca.
*To find out if you are eligible, please visit www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
For more homebuying tips, contact me or visit CMHC's interactive Step by Step Guide at www.cmhc.ca. CMHC is Canada's largest provider of mortgage loan insurance, helping Canadians buy a home with a minimum down payment starting at 5%. Ask your mortgage professional about CMHC.
The information is provided by CMHC for general illustrative purposes only, and does not take into account the specific objectives, circumstances and individual needs of the reader. It does not provide advice, and should not be relied upon in that regard. The information is believed to be reliable, but its accuracy, completeness and currency cannot be guaranteed. Neither CMHC and its employees nor any other party identified in this Article (Lender, Broker, etc.) assumes any liability of any kind in connection with the information provided. CMHC stakeholders are permitted to distribute the materials at their expense. The above mentioned stakeholder organization is responsible for the distribution of this document.