REALTORS® lobbied vigorously for help for home owners and buyers in the Federal Budget, and that effort brought results. Three areas related to home ownership were addressed in the Budget.

One of the important issues that REALTORS® have asked for was a change to the Home Buyers' Plan. That plan, first implemented in 1992, allowed home buyers to withdraw $20,000 from their RRSP to use for down payment on a home purchase. That amount has never been increased, and its value deteriorated due to inflation. That was addressed in the present Budget, and the maximum withdrawal amount was increased to $25,000.

Another important item was an announcement of a tax credit for home buyers to help with the closing costs on property purchase. These costs include legal fees and land transfer taxes, and, since buyers must budget for these costs, they lower the amount of down payment that is available for closing. The Federal Budget includes a First-Time Home Buyers' Tax Credit of 15% on up to $5,000 of cost incurred on home purchase. That amounts ot a maximum tax credit of $750.

The third announcement deals with help for home owners and buyers of properties that require renovation. The Home Renovation Tax Credit announced in the Budget provides a 15% credit on the cost of eligible home renovations costing over $1,000 up to $10,000. That will amount to a tax credit of up to $1,350, and would apply to eligible home renovation costs incurred between January 27, 2009 and February 1, 2010.