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Tips on Tax Savings in Canada for Home Owners and Buyers

6 April, 2010 / by Bryan Jaskolka

Tax Savings for Home Owners and Buyers

With the 2009 tax season coming to a close, it’s time to take a look at some of the ways that homeowners can take advantage of tax perks to help lower the amount of tax they pay. Here are a couple of examples of what’s available:

  • Home Buyer’s Tax Credit: If you bought your home after January 27, 2009 you may be eligible for the Home Buyer’s Tax Credit. The credit can mean up to $750 of tax savings. The catch is that you can’t have owned a home for the past five years.
  • Home Buyers’ Plan: Once again for first-time home buyers, this plan allows a withdrawal of up to $25,000 (per spouse) from an RRSP without paying taxes on the amount. Payments are repaid to your RRSP over a 15-year period.
  • Home Renovation Tax Credit: Home renovation projects completed between January 28, 2009 and January 31, 2010 are eligible to claim this credit. Save up to $1,350 on your taxes.

While 2009 had several programs aimed at both home owners and buyers, you’ll find that in 2010, not so much, so take advantage of everything you can now.