Posted February 15, 2009 by Adam Toren in Vancouver Real Estate

Federal budget news for homeowners

federal-budget-newsIt seems this year’s snow in Metro Vancouver won’t outlast the Harper government and “prorogue” will once again join “rouge” as seldom used words by Canadians. The fact we won’t be having a federal election in the immediate future shows stability and grows consumer confidence. If you haven’t noticed, consumer confidence is close to that of a grade 5 boy asking a girl to dance in front of his buddies.  Mind you nowadays they are probably on their third long-term relationship at that age.

Anyways, Harper remains the head of the Loyal Order of Water Buffaloes Lodge on Parliament Hill and his new federal budget brings new benefits to homeowners.

–         A new First-Time Home Buyers’ Tax Credit of up to $750 to help homebuyers with closing costs such as land transfer taxes and legal fees

–         a new Home Renovation Tax Credit of up to $1,350 for homeowners who renovate their home.

–          a new funding program for ecoENERGY retrofits that provides home and property owners up to $5,000 for energy improvements and a new social housing program.

In addition, there will be an increase to the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000. Eligible couples can now withdraw up to $50,000. Keep in mind you do have to pay that back…

These should help some of those would-be homebuyers off the fence and in turn help stimulate the economy.

Keep in mind, each time a home changes hands, the transaction generates significant spin-offs and jobs because homebuyers also purchase furniture, appliances and use services such as movers, cleaners and painters to make their new house feel like a home.

What would really help home buyers would be the reduction or, ideally, the removal of the Property Transfer Tax. That is unlikely to happen given the projected deficit budget but the provincial election is Tuesday, May 12th and I’m sure there will be a promise or two made for homeowners between now and Election Day.

Adam Toren

Adam Toren
Adam Toren is born and raised in Vancouver BC and loves everything Vancouver BC has to offer. He loves traveling and exploring new and unique restaurants and places around the world.