Melcar Group

Budget Guru

Home Buyers’ Tax Credit

Sure we all know that the housing market is in a slump at the moment, and it’s projected that is will be for a little while longer. However, if you have the money, now is the time to capitalize and make progress in your assets and your portfolio. All federal governments are implementing tax credits and breaks for their population to essentially spend money (if they have it) to stimulate the economy.

So in Canada, what is the Home Buyers Tax Credit? Introduced in 2009, it creates a tax credit, based on an amount of $5,000 for certain home buyers that purchase a home after January 27, 2009.

It is stated in the government brochures that it is only granted to certain home buyers, so who is eligible for the tax credit?

1. Any person who qualifies for a home; and neither person(s) have previously owned and lived in another home in the year of the purchase or any of the four preceding years.
2. If you are a person with a disability, or are buying a home for a related person with a disability, you do not have to be a first time home buyer to qualify.

The HBTC is calculated by taking the lowest personal income tax rate for the year (ex: 15% in 2009) and multiplying that by $5,000. Therefore the tax credit for 2009 will be $750. To claim this tax credit in 2009, a new entry on the personal tax forms will be visible to allow the claim. Also, either you or your spouse/common-law partner can claim or share the credit; however it can not exceed $750.

The good news about the tax credit is the fact that it does not affect the Home Buyer’s plan.

The Home Buyer’s plan is a program that allows you to withdraw funds from your RRSP to purchase a home. Currently the maximum amount that an individual can withdraw in one calendar year from their RRSP is $20,000.

More information regarding the Home buyers’ tax credit and many other federal implemented tax credits can be found at the Government website .


April 10, 2009 Posted by | Federal Credits, Financial News | Leave a comment

Canada’s Economic Situation

Being interested in personal finances (compared to corporate finances for example), I read a lot of news, articles, and publications on current situations. The following information has been gathered from

We often hear about the current status of the United States, mainly because of the popularity of the country, the recent election of Barack Obama, and the crisis that they are truly in. However, they are not the only country that is facing economic turmoil; Canada is also facing many hardships as a country and as individuals.

The current jobless rate in Canada is now reaching 7.7 percent, and during the month of February alone there were approximately 82, 000 job losses.  Overall in the past for months, Canada has lost a total of 295, 000 jobs. This translates to an average of 73,750 each month for the last four months. This is really difficult times for everyone. 

As individuals, you can only prepare and equip yourself with the knowledge of your personal finances as well as being aware of minor changes that you can make in your daily life to save a few dollars here and there.

March 16, 2009 Posted by | Financial News | | Leave a comment