The Canadian 2009 Budget was released yesterday and everyone's eyes were glued to the t.v. last night to see what the new budget could mean for them.

Well, for  future homeowners, it did mean something positive. After CREA (Canadian Real Estate Association) had been lobyying for several years on the issue of raising the withdrawl limit under the Home Buyers Plan, to reflect inflation and the changing house prices since it's creation in 1992, CREA was finally heard!

CREA was pleased at the fedreral government's announcement in yesterday's budget that it has raised the maximum withdrawl limit under the Home Buyers Plan to $25,000.  The plan will now allow first time homebuyers to withdraw up to $25,000 from their RRSP to be used in a down payment on a residential property, compared to the original $20,000 limit 16 years ago.

The president of CREA, Calvin Lindgerg stated; “The change announced to the popular Home Buyers’ Plan will help Canadians who want to own their own home, and do it in a responsible way that is not a major drain on taxpayers,”   

“The federal government has found a way to introduce economic stimulus and housing initiatives for specific groups, and for Canadians who want to buy their first home.” Mr. Lindberg added.

The government also announced a home renovation tax credit program; but the association believes that it's success will depend on it's effective administration and promotion with CREA president stating  “The use of tax credits will make the program of interest to many Canadians who own their own home, but the success will be tied in part to the availability of savings or credit, since the expense has to be paid before the tax credit is issued.”

All in all, the association applauded the government for recognizing the economic importance of the housing industry in some of it's budget measures, and only time will tell if this was enough.

For more information on the Barrie and Area Real Estate Market; visit  www.barriefamilyhomes.com or in spanish www.casaenbarrie.com