 鲜花( 65)  鸡蛋( 0)
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 The federal government released details of their proposed budget yesterday, which will potentially benefit homeowners (or potential homeowners) in a number of ways if the budget is passed.
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Home renovation tax credit
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1 p) m9 l3 P" XThe proposed budget includes a tax credit for eligible types of home renovations (see link). The tax credit of up to $1,350 will apply to renovations of at least $1,000, but not greater than $10,000.1 b; ~% ~8 X* M" c
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First-time home buyers’ credit8 M r2 }! I% R0 X. L0 b7 A
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: H6 o( e) c; O* L* y" ]3 |Another aspect of the proposed budget relates to purchases of homes by first-time home buyers. First-time home buyers who acquire a qualifying home after January 27, 2009 may be able to claim a new non-refundable tax credit of $5,000 and worth up to $750 ($5,000 x 15%).# n/ e7 c, q1 }: J+ S
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Home buyers’ plan increased
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) G: j* K+ _. Z9 i% P% [The Home Buyers’ Plan (HBP) is a program that currently allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home. The proposed budget would increase the eligible withdrawal amount to $25,000.
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- g! M+ o d+ S7 _4 ^; [$ H* MGovernment to purchase additional mortgage investments2 S+ k$ Y$ o/ O7 S. |1 W
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The Government of Canada previously announced last November that it would purchase up to $75 billion of insured mortgage backed securities (pools of residential mortgages). The proposed budget now includes provisions to purchase up to $50 billion in additional pooled mortgages.4 j* Y9 P0 g8 ~# ~% T3 v
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What does this mean? The global credit crisis has reduced, restricted or entirely frozen certain forms of lending. Government purchases of CMHC insured mortgage pools helps to ensure that residential mortgage lending will continue to operate smoothly. t* N( y% M0 _* p/ [1 _% B
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Related articles:
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! w7 T$ @9 B! S8 h( IGlobe and Mail - http://business.theglobeandmail. ... Story/Business/home
0 I' b. K& ?; P# i$ T" ECBC - http://www.cbc.ca/canada/story/2 ... nalfin.html?ref=rss" @# g, Y8 J$ H/ e
KPMG - http://www.kpmg.ca/en/services/tax/tnf/tnfc0906.html6 s' o* X- R9 R6 A) u) P
Edmonton Sun - http://www.edmontonsun.com/Business/News/2009/01/27/8167746.html
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