There are a number of items in the 2009 budget that will positively affect first-time home buyers as well as existing homeowners.

First-Time Home Buyers

There are two initiatives that will benefit first-time home buyers:

The first item is a $5,000 increase in the RRSP Home Buyers’ Plan withdrawal limit. The limit, which used to be $20,000 will be increased to $25,000, allowing for a greater opportunity for first-time home buyers to accumulate that all-important down payment amount.

The second item is up to $750 in tax relief directed to first time home buyers.

Existing Homeowners

There are two additional initiatives for existing homeowners:

The first item is the Home Renovation Tax Credit.

This initiative will provide homeowners with a maximum $1,350 income tax credit on eligible home renovation expenses between $1,000 and $10,000 for work performed or goods acquired between January 27, 2009 and February 1, 2010.

The second item is the ecoENERGY Retrofit Program. This program proposes to spend $300 million over the next two years supporting home retrofits.

As you can see, the four housing initiatives brought forward by the 2009 Federal Budget can only stimulate Ottawa’s real estate industry. Things are definitely getting better!

For more information, visit our Ottawa real estate website.

* Federal Government budget information obtained from http://www.budget.gc.ca/2009/plan.