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Canada's 2010 Budget Keeps Home Buyers in Mind



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By : Lina Horner    99 or more times read
The 2010 budget contains some plans and proposal of interest to Canadian home buyers, including both old and new items. The Canadian government considers home purchase to be an important part of the overall economy and wants to encourage Canadian home buyers in their endeavours.

To this end, the 2010 budget has kept the first-time home buyer tax credit. The Home Buyers’ Tax Credit allows first-time home buyers to deduct 15% of up to $5000 in home purchasing expenses up to $750. For the purposes of this credit, according to the Canada Revenue Agency, “first-time home buyers” are considered to be anyone who has “acquired a qualifying home” and who has “not lived in another home owned by them or their spouse or common-law partner in the year of acquisition or in any of the four preceding years”.

The ceiling for RRSPs is remaining at $25,000. Canadians may recall the changes to the 2009 budget that bumped up the amount of funds that one may draw out of their RRSP from $20,000 to $25,000.

There are some new proposals that will be voted on this year. “Enhancing Disclosure and Business Practices of Financial Institutions” is aimed at de-mystifying the penalties of mortgage pre-payment penalties. Thus far, they can vary widely and can be considerable, especially for the unprepared home owner. The legislation is geared towards informing home owners as to when it is the best time to use extra money to put on their mortgage.

New legislation enabling credit unions to expand beyond the provinces of their establishment will greatly aid people who want to transfer a mortgage across provincial boundaries. It will also introduce new players in the mortgage lending industry and increase competition. Canadians will start to have more options than ever before when it comes to choosing a mortgage and an interest rate.

The Insured Mortgage Purchase Program is continuing until the end of March 2010. This program provides funds to financial institutions that lend to businesses and individuals. Stable funding for lenders is an important part of stabilizing the economy, so that lenders can provide the capital for Canadian business and personal endeavours.

There are still opportunities for home buyers, even in today’s economically-minded 2010 budget. Make sure that you know what Canadian incentives and tax breaks apply to you when you purchase Canadian real estate so that you don’t miss out on hundreds or thousands of dollars of savings.
Find out more about Calgary luxury real estate opportunities at SmartCalgaryHomes.com.

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