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September 17, 2008
Victoria Area REALTORS® Welcome Proposed Tax Credit For First-Time Home Buyers
Victoria area REALTORS® have welcomed Tuesday’s announcement by the Conservative Party of a proposed $5,000 tax credit for first-time homebuyers.
"It will help," says Tony Joe, President of the Victoria Real Estate Board. "The issue of affordability is one that REALTORS® constantly monitor, and we welcome this proposal," he added.
However, REALTORS® believe that the changes to the existing, well-known Home Buyers Plan that the Canadian Real Estate Association (CREA) has been advocating for several years would also be an effective way to address the issue of affordability for first-time buyers. CREA proposes that the federal government raise the maximum withdrawal limit in the Home Buyer's Plan from $20,000 to $25,000.
Joe noted that the Victoria Real Estate Board lobbied all local Members of Parliament to support such an increase during a visit to Ottawa in May. The current withdrawal limit has not been changed since the program was introduced in 1992. In 2007, nearly 105,000 Canadians borrowed more than $1.2 billion under the plan from their personal Registered Retirement Savings Plans to use as down payments on their first homes.
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