Not only does renovating your home create new levels of comfort and convenience for your family, it can reduce energy consumptions and maintenance costs, as well as increasing your home’s resale value. For a limited time only, the government of Canada is willing to help you pay for your renovations!
The Home Renovation Tax Credit (HRTC) is designed to encourage Canadians to do new renovations or move ahead with projects they may have been postponed.
If you proceed with eligible home renovations before February 1 2010, you can claim a 15% tax credit on the portion of eligible expenditures exceeding $1000.00, but not more than $10,000.00. This means you can get back up to $1350.00 from the government when you file your 2009 tax return.
The HRTC can be claimed on houses, cottages, condominium units owned for personal use. Eligible projects include renovating a kitchen, bathroom, basement, installing new carpet or hardwood floors; building an addition, deck, fence; replacing your furnace or water heater. Routine repairs and maintenance do not qualify, neither do purchases such as appliances, electronics or construction equipment.
Of course the big question is, “Where am I going to get the money to do the renovations?” Like so many worthwhile investments, the HRTC requires you to spend money in order to make money. The good news is that if you are like most Canadian homeowners, you may be able to fund your renovations with the equity you have built up in your home. By renovating strategically, your improvements can pay for themselves, plus create a healthy profit when you sell!
As your mortgage advisor, I would be happy to review your current situation to see if you can benefit from refinancing at today’s low mortgage rates. It is entirely possible that you can enjoy a newly renovated home and receive your tax credit, without increasing your monthly mortgage payments.