Maureen O’Neill TREB PRESIDENT’S COLUMN AS IT APPEARS IN THE TORONTO SUN February 06, 2009
Federal Budget Helps
Home Buyers and Owners
It is always rewarding when hard work produces results.
That’s why REALTORS® are proud of the work they did
to make sure that the recently announced Federal Budget
recognized the importance of the housing sector to the
economy. I’m happy to say that these efforts helped to
produce a Budget that puts more money in the pockets of
home buyers and owners.
One of the most important announcements in the Budget
was a change to the Home Buyers’ Plan that REALTORS®
have long been calling for. Specifically, the Budget proposes
to increase the maximum amount that individuals can
withdraw, tax-free, from their RRSP to put towards the down
payment on a home, from $20,000 to $25,000. REALTORS®
worked hard to ensure that the government understood that,
while this program has been extremely successful since it
was first implemented in 1992, its usefulness to home buyers
was deteriorating because the withdrawal limit had not kept
pace with inflation. The increase in the limit announced
with the Budget addresses this concern.
Another important Budget announcement for home buyers is
a tax credit that will help to offset the closing costs associated
with housing purchases. Closing costs can include things
like legal fees and land transfer taxes. They can represent
a significant cost for many buyers. The Federal Budget
recognized this and includes a First-Time Home Buyers’ Tax
Credit of 15 per cent on up to $5,000 of costs associated with
the home purchase. This means that first-time home buyers
could be eligible for a tax credit of up to $750.
The Federal Budget also includes an initiative that helps
both current home owners and home buyers considering
properties that may benefit from renovations. The Home
Renovation Tax Credit provides a 15 per cent credit that
can be claimed on the portion of eligible home renovations
exceeding $1,000, but not more than $10,000, which means
that home owners could be eligible for a tax credit of up to
$1,350. This credit would apply to eligible home renovation
expenditures, after January 27, 2009 and before February
1, 2010, on one or more of an individual’s personal use
properties.
While it is encouraging to see the federal government take
action to help home buyers and owners, it is important for all
levels of government to do their part. This is especially true
in the City of Toronto, where the Toronto Land Transfer Tax
discourages home ownership. Like the federal government,
Toronto City Council should recognize the importance of the
housing industry to the economy, and the best way it can do
this is to roll back the Toronto Land Transfer Tax.
By helping to create thousands of jobs, buying or improving
a home is not only an investment in a property; it is also an
investment in the economy. REALTORS® are encouraged that
the Federal Budget recognized this reality and will continue
to work hard to represent the interest of home buyers and
owners at all levels of government.
REALTORS’® interaction with governments occurs in many
forms, but probably the most critical is the work they do to
ensure that politicians consider the impact of their decisions
on home buyers, home owners, and real estate markets.
With this in mind, REALTORS® and their professional
associations such as the Canadian Real Estate Association,
Ontario Real Estate Association, and the Toronto Real Estate
Board are constantly monitoring government proposals and
actions, and are ready to spring into action.
Maureen O’Neill is President of the Toronto Real Estate Board,
a professional association that represents 28,000 REALTORS®
in the Greater Toronto Area.
Federal Budget Helps
Home Buyers and Owners
It is always rewarding when hard work produces results.
That’s why REALTORS® are proud of the work they did
to make sure that the recently announced Federal Budget
recognized the importance of the housing sector to the
economy. I’m happy to say that these efforts helped to
produce a Budget that puts more money in the pockets of
home buyers and owners.
One of the most important announcements in the Budget
was a change to the Home Buyers’ Plan that REALTORS®
have long been calling for. Specifically, the Budget proposes
to increase the maximum amount that individuals can
withdraw, tax-free, from their RRSP to put towards the down
payment on a home, from $20,000 to $25,000. REALTORS®
worked hard to ensure that the government understood that,
while this program has been extremely successful since it
was first implemented in 1992, its usefulness to home buyers
was deteriorating because the withdrawal limit had not kept
pace with inflation. The increase in the limit announced
with the Budget addresses this concern.
Another important Budget announcement for home buyers is
a tax credit that will help to offset the closing costs associated
with housing purchases. Closing costs can include things
like legal fees and land transfer taxes. They can represent
a significant cost for many buyers. The Federal Budget
recognized this and includes a First-Time Home Buyers’ Tax
Credit of 15 per cent on up to $5,000 of costs associated with
the home purchase. This means that first-time home buyers
could be eligible for a tax credit of up to $750.
The Federal Budget also includes an initiative that helps
both current home owners and home buyers considering
properties that may benefit from renovations. The Home
Renovation Tax Credit provides a 15 per cent credit that
can be claimed on the portion of eligible home renovations
exceeding $1,000, but not more than $10,000, which means
that home owners could be eligible for a tax credit of up to
$1,350. This credit would apply to eligible home renovation
expenditures, after January 27, 2009 and before February
1, 2010, on one or more of an individual’s personal use
properties.
While it is encouraging to see the federal government take
action to help home buyers and owners, it is important for all
levels of government to do their part. This is especially true
in the City of Toronto, where the Toronto Land Transfer Tax
discourages home ownership. Like the federal government,
Toronto City Council should recognize the importance of the
housing industry to the economy, and the best way it can do
this is to roll back the Toronto Land Transfer Tax.
By helping to create thousands of jobs, buying or improving
a home is not only an investment in a property; it is also an
investment in the economy. REALTORS® are encouraged that
the Federal Budget recognized this reality and will continue
to work hard to represent the interest of home buyers and
owners at all levels of government.
REALTORS’® interaction with governments occurs in many
forms, but probably the most critical is the work they do to
ensure that politicians consider the impact of their decisions
on home buyers, home owners, and real estate markets.
With this in mind, REALTORS® and their professional
associations such as the Canadian Real Estate Association,
Ontario Real Estate Association, and the Toronto Real Estate
Board are constantly monitoring government proposals and
actions, and are ready to spring into action.
Maureen O’Neill is President of the Toronto Real Estate Board,
a professional association that represents 28,000 REALTORS®
in the Greater Toronto Area.
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