With the announcement of the 2009 budget, the Canadian government has added another value added program to help Canadian homeowners, the Home Renovation Tax Credit (HRTC). This gives home buyers an opportunity to complete those renos they have been wanting to do for a tax credit. The HRTC can be combined with existing government rebates applicable to energy efficient home improvements to save you even more money. Here are some examples of how you can save money by refinancing your mortgage:
Additional benefits of the above programs:
How do these programs work?
1. Mortgage Insurer
The rebate on the mortgage insurance premium applies to both Genworth and CMHC insured mortgages.
The rebate process is simple and can be done in 3 simple steps (see below):
1) Determine how energy efficient the home is:
a) If you are purchasing a home:
Please refer to CMHC and Genworth website for a more detailed list.
b) If you are renovating an existing home:
2) Apply for the Premium Refund
Please contact Laurie Baird for the CMHC or Genworth premium Refund forms or your broker or lender.
3) Submit the application along with the below documents
a) Purchasing a home:
Provide a copy of the first page of your EnerGuide evaluation report of R-2000 certificate.
b) Renovating existing homes:
Provide a copy of the fist page of both your pre-improvement and post-improvement EnerGuide evaluation report.
2. ecoEnergy Retrofit
Similar to the above Mortgage Insurer rebate, the ecoENERGY Retrofit grant is based on the type and number of energy efficient improvements made, and how energy efficient the improvements are. (This grant is applied once per house).
The best part is that the improvements are not complicated! For example, installing energy-efficient windows or basement insulation and purchases like high efficiency air conditioners and hot water heaters are eligible.
Click here for more info on the ecoENERGY Retrofit grant:
ecoEnergy Retrofit Grant
3. Home Renovation Tax
The 2009 federal budget provides a temporary incentive for Canadians to implement new renovation projects or accelerate planned future projects.
The temporary HRTC provides a 15% income tax credit on eligible home renovation expenses for work performed or goods acquired after January 27, 2009 and before February 1, 2010.
The credit may be claimed for the 2009 tax year on eligible expenses over $1000 but not exceeding $10,000 and will provide up to $1350 tax relief.
Examples of HRTC Eligible and Ineligible Expenditures:
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.