The recent budget, expected to be officially passed within the next few months, provides 
timely assistance for first-time buyers. Here are the highlights:

The Home Buyers' Plan (HBC) which allowed first-time home buyers to withdraw up to 
$20,000 from a RRSP without having to pay tax will be amended to allow withdrawals of 
up to $25,000. The withdrawal has to have been made after January 27, 2009 and will 
apply to 2009 and subsequent years. It is also repayable in installments over a period of 
up to 15 years. 

The First-Time Home Buyers' Tax Credit gives a first-time home buyer a non-refundable 
tax credit of $750.00 for a qualifying home purchased after January 27, 2009. Qualifying 
homes will be most of the commonly purchased homes of properties. This credit will be 
claimed on the personal income tax return. 

It is important to note that for both of these programs an individual will be considered to 
be a first-time buyer if neither the individual nor his/her spouse or common law partner 
owned and lived in another home in the year of withdrawal/purchase or in any of the four 
preceding calendar years. 

The Home Renovation Tax Credit will allow a tax a tax credit of up to $1,350 for home 
renovations of an enduring nature and associated costs pursuant to agreements entered 
into after January 27, 2009 and work performed or goods acquired before February 1, 
2010. The credit will be for 15% of renovation expenses between $1,000 to $10,000 and 
will only be available in 2009. Normal maintenance expenditures and purchases of furniture, 
appliances, etc will not be eligible. This is not restricted to first-time buyers. 

The existing Land Transfer Tax (LTT) rebates continue to apply. For the Ontario LTT, 
first-time buyers buying the property for their own residence are except from up to 
$2,000 of the tax regardless of whether of not the home is brand new. For the Toronto 
LTT, which applies only to homes in the City of Toronto, first-time home buyers of resale 
or new homes are eligible for a waiver of up to $3,725. This is the tax on a $400,000 
property. So, basically, first-time buyers of a home up to $400,000 in Toronto will not pay 
the tax. If the home is over $400,000 the rebate is prorated so that the first $3,725 will 
be waived. Also, for those who may have purchased a new home or condominium in 
Toronto, if the agreement was signed on or before December 31, 2007, the Toronto Tax 
does not apply. 

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Eric Eaton, a Realtor since 1987, specializes in working with clients to help them achieve 
their real estate goals. He has developed a 4 step process that all starts with 1) listening 
to his client to get a clear understanding of their needs, goals, expectations, time 
frame and financial abilities. 2) With that information, he customizes a detailed plan of 
action paying special attention to his clients main concerns. 3) This is all documented in 
his Written Guarantee of Service which comes with an Easy Exit Option to eliminate all 
the risks of using his service. 4) He then let's his clients know up front that he expects 
them to evaluate him and the service they've received, ensuring that he gives them the 
very best...... 100% Satisfaction Guaranteed!!!

Eric Eaton, Sales Representative
Coldwell Banker Case Realty
www.EricEaton.com
Tel: 416-281-2200

P.S. Do you have a question or comment? Please use the form below. I'm looking forward to hearing from you and helping you with your real estate goals and dreams!