September 17 - Proposed federal first-time homebuyer tax credit

September 17, 2008

September 17, 2008 - MEMBER BULLETIN

Conservatives promise $5,000 first-time homebuyer tax credit

Prime Minister Stephen Harper promised that a Conservative government would offer first-time homebuyers a tax credit of up to $5000 to help defray the closing costs on a home purchase. The tax credit would be phased-in over four years and the maximum tax credit would be $750 assuming eligible closing costs exceeding $5,000 (not hard to do in the Greater GTA).

According to a backgrounder issued by the Conservatives, eligible closing costs can be expected to include land transfer tax (net of existing provincial and/or local rebates), mortgage loan insurance premiums, title insurance, property insurance, estoppel certificates fees, etc., with the final list being developed based on consultation with the industry, consumers and CMHC.

The backgrounder is silent on the issue of effective date and transition rules however we are seeking clarification through the Canadian Home Builders' Association as it will no doubt be the first question asked of you by potential first-time homebuyers. We will keep you advised as any further information becomes available on the transition rules or any other aspect of the proposal.

For further information:

-  Direct from the source, please click HERE to read the release and backgrounder from the conservative party.

-  Please click HERE to read the release from CHBA

Please note that this bulletin together with links to the background information will be posted on BILD's consumer website, www.newhomes.org, should you wish to direct purchasers to a non-partisan source.

If you have any questions, please do not hesitate to contact either Stephen Dupuis, CEO, BILD, at 416, 391-3453 or sdupuis@bildgta.ca or Joe Vaccaro, Vice-President, Policy & Government Relations, at 416-391-3454 or jvaccaro@bildgta.ca.