Home Buyers Plan (HBP)
This Canada Revenue Agency (CRA) program allows Canadians residents to borrow up to $25,000 from RRSP’s to use towards the purchase of their home. The advantage of this is that this money is not subject to withholding tax. It is technically a loan though, so it must be repaid over the course of 15 years. The program is also commonly believed to only be available to first-time home-buyers, however those who have owned before but not in the previous 4 years are also eligible, provided they haven’t used it before and still have a balance owing from the previous Home Buyers Plan.
Home Buyers' Tax Credit
You are eligible for the HBCT if you or your spouse or common-law partner acquire a qualifying home and you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years. You must intend to occupy the qualifying home.The HBTC is calculated by multiplying the lowest personal income tax rate for the year (which was 15 per cent in 2009) by $5,000, which would have been a $750 credit. Google “Line 369 – Home Buyers Amount” for more details.
CMHC Eligible Energy-Efficient Building Program
CMHC encourages the development of more energy-efficient homes by making eligible a broader range of home building programs. If you purchase a home that meets the energy efficient standards and has the certification, you may qualify for a 10 per cent mortgage loan insurance premium refund when CMHC Mortgage Loan Insurance is used to finance the purchase or construction.
CMHC Purchase Plus Improvement program
CMHC Improvement enables mortgage professionals to offer greater financing choice to borrowers who are building new homes or who want to undertake small or large scale improvements when purchasing existing homes where the improvements will increase the value of the property.