Financial Advice

Effective January 29, 2009, any Canadian who spends money on home renovations will be eligible to receive up to $1,350 in tax relief thanks to the new Home Renovation Tax Credit proposed in Harper Government’s Economic Action Plan.

“Every time Canadians invest in home renovations, they are helping to create construction and building-supplies jobs in their own communities,” said the Prime Minister. “By providing an incentive for Canadians to invest in their homes, we are also encouraging them to invest in local jobs.”To highlight the kind of projects that will be eligible under this plan, the Prime Minister visited an Ottawa-area home renovation site and met with a local contractor who will be better able to protect and create jobs thanks to the additional home renovation projects that will be encouraged through this tax credit.

The Home renovation Tax Credit will provide a one-year, temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired between January 27, 2009 and February 1, 2010. The credit may be claimed on eligible expenditures exceeding $1,000 but no more than $10,000.

The Home Renovation Tax Credit is one of several initiatives to help homeowners and homebuyers that is contained within the Harper Government’s Economic Action Plan. Before homeowners, homebuyers, and local construction and building supply workers can benefit from these new initiatives, Parliament must pass the 2009-2010 Federal Budget. (Source: Office of the Prime Minister – pm.gc.ca)

This morning I met with Carole, a single mother, this wonderful lady has been fending for herself from the age of 14. She can be so proud of herself. She came to me, to help her and her 15 year old daughter obtain their dream of home ownership. They are not ready now and won’t be ready for at least 6 months, today they have walked away with a concrete plan so that their dream will become a reality.

If you are thinking of buying a home in the next 6 to 12 months or even longer, now is the time to contact your trusted mortgage agent/broker. Two tips I gave Carole this morning, firstly for her to look at reducing the interest she is paying on her auto loan and credit card. We worked out the reduction in her credit card interest alone would equate to $112 a month – this can be used to pay off her visa card. Secondly to draw up a budget, in order for the budget to be effective, I have suggested that she track her spending for the next month. Once she sees where her money is going she can create a budget that is realistic and at the same time she can eliminate unnecessary spending.

Another point I want to make is regarding credit card payments. Please pay your credit card before the due date. I have seen where clients’ credit scores have been drastically affected, not for a missed payment but a late payment. One client actually paid on the due date however he paid online, which takes 2 to 3 days to get credited to your account. On his credit bureau it showed up as a R2 (which previously used to mean 60 days in arrears). Due to the falling property prices, banks are also moving quicker to foreclosure when a mortgage payment is missed. If you find you are unable to meet your mortgage payments, please contact me so that we can discuss different strategies.

Charmaine Idzerda

Tel: 905.336.5997 or 1.866.824.8057

I have created a Video introducing Verico Designer Mortgages Inc. Take a look – and comment, please.