Proposed Changes for First Time Home Buyers

Home Buyers Plan: Starting January 28, 2009, first time Home buyers can withdraw up to $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home with out incurring the tax. This limit has been increased from $20,000. For the purpose of the Home Buyers Plan, an individual is considered a first time home buyer if neither the individual or his/her spouse owned and lived in another home in the calendar year of the withdrawal or in any of the four preceding calendar years.

First Time Home Buyers Credit: A tax credit of $5000 has been introduced for first time home buyers that purchase a home after January 27, 2009. The credit for the taxation year will be calculated by reference of the lowest personal tax rate for the year the claim is made. A first time home buyer for the purpose of this credit is an individual that has neither owned or lived or his/her spouse has owned and lived in another home in the calendar year of the claim or in any of the four preceding calendar year.

If you would like to pre-approved to purchase your first house please don't hesitate to contact me at 604-764-6336. I'm a long term mortgage broker working with Dominion Lending Centres.