The Government of Canada is taking action to help more Canadians become homeowners.

Increasing the Home Buyers’ Plan limit
The HBP allows first-time homebuyers to withdraw amounts from an RRSP to purchase a home without having to pay tax on the withdrawal. The federal government is providing first-time homebuyers with additional access to their registered retirement savings plans (RRSPs) for home purchases, by increasing the Home Buyers' Plan (HBP) withdrawal limit to $25,000 from $20,000. This is the first increase in the withdrawal limit since the HBP was introduced in 1992. It will allow a couple to withdraw up to $50,000 from their RRSP funds toward the purchase of their first home. For more information, please visit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

Introducing the First Time Home Buyers’ Tax Credit
Through Canada's Economic Action Plan, the federal government will introduce a First-Time Home Buyers' Tax Credit (HBTC) to help with the purchase of a first home. This will assist first-time homebuyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time homebuyers, who must also save for a down payment. The $5,000 non-refundable HBTC amount will apply to qualifying homes acquired after January 27, 2009, and will provide up to $750 in federal tax relief. For more information, please visit http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html