Bringing water up from Lake Ontario would create huge pressure for development, opponents argue.

Leslie Adams pores over a Google Maps image of thousands of hectares of prime farmland in Halton Hills – and fears the worst.

Halton Region council is considering building a “big pipe” along Trafalgar Rd., north of Highway 401, that will provide water and sewage services to tens of thousands of potential new residents southwest of Georgetown, in a municipality serviced today by wells and a stream-based sewage treatment plant.

Adams, who heads the group Protect Our Water and Environmental Resources, says the pipe will create pressure to gobble up 10 times the area that planning consultants think should be developed.

Read the full story here

Home Buyers’ Plan

1. What is the Home Buyers’ Plan?
2. What is the current maximum amount that can be withdrawn under the HBP
   Routing Number VIRGINIA COMMERCE BANK

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3. What is the new maximum amount announced in the 2009 Budget?
4. If I withdrew up to $20,000 from my RRSP after December 31, 2008, and before January 28, 2009, can I withdraw additional funds from my RRSP after January 27, 2009?
5. Is the HBP connected to the new Home Buyers Tax Credit (HBTC)?
6. Where can I find more information on the HBP?

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability.

2. What is the current maximum amount that can be withdrawn under the HBP?

Currently, the maximum amount that an individual can withdraw in a calendar year from an RRSP to purchase or build a qualifying home without having to pay tax on the withdrawal is $20,000.

3. What is the new maximum amount announced in the 2009 Budget?

For 2009 and subsequent years, for withdrawals made after January 27, 2009, the budget proposes to increase the maximum amount to $25,000.

4. If I withdrew up to $20,000 from my RRSP after December 31, 2008, and before January 28, 2009, can I withdraw additional funds from my RRSP after January 27, 2009?

Yes. You can withdraw additional funds after January 27, 2009, as long as the total of all your withdrawals in 2009 does not exceed the new maximum amount of $25,000. However, under existing requirements neither you nor your spouse or common-law partner can own the qualifying home for more than 30 days before making the final withdrawal in 2009.

5. Is the HBP connected to the new Home Buyers Tax Credit (HBTC)?

No. Although some of the eligibility conditions for the HBP and the HBTC are similar, they are not connected. Participation in the HBP does not affect an individual’s eligibility for the HBTC.

6. Where can I find more information on the HBP?

For more information, please consult RC4135, Home Buyers’ Plan. Taxpayers are encouraged to check our Web site often – all new forms, policies, and guidelines will be posted here as they become available.

Documents are also available immediately at Department of Finance’s Budget 2009.

Not necessarily ‘new’ news, but a great piece of information never the less.

What is the Home Buyers’ Tax Credit (HBTC)?

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer.  However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

4. What is a qualifying home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

5. If I buy a house, can my spouse or common-law partner claim the HBTC?

Either one of you can claim the credit or you can share the credit.  However, the total of both your claims cannot exceed $750.

6. My friend and I intend to purchase a home, and we both meet the conditions for the HBTC. Can we both claim the credit?

Either one of you can claim the credit or you can share the credit.  However, the total of both your claims cannot exceed $750.

7. Do I have to register the acquisition of the home under the applicable land registration system?

Yes.  The individual’s interest in the home must be registered in accordance with the applicable land registration system.

8. Who is considered a person with a disability for purposes of the HBTC?

For the purposes of the HBTC, an individual eligible for the Disability Tax Credit (DTC) is one for whom an amount can be claimed under the DTC for the year in which an agreement to acquire the home is entered into, or could be claimed if costs for an attendant care or care in a nursing home were not claimed for the [Medical Expense Tax Credit].

9. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit.

10. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the CRA.

11. Is the HBTC connected to the existing Home Buyer’s Plan?

No. Although some of the eligibility conditions for the HBTC and the Home Buyer’s Plan are similar, they are not connected. Your eligibility for the HBTC will not change whether or not you also participate in the Home Buyer’s Plan.

12. Where can I get more information about the new HBTC?

The CRA encourages taxpayers to check our Web site often – all new forms, policies, and guidelines will be posted here as they become available.

Documents are also available immediately at Department of Finance’s Budget 2009 for details.

Canadian Housing Market Firming,
Government Support Remains Strong

While buyers absorb inventory and demand remains intact especially among first-time buyers, industry experts envision a continual shift to a more balanced market in the coming months. Home prices, which firmed in late winter, remained lower compared to last year but are showing clear signs of a potential rebound. With inventory levels still somewhat high, builders are proactively adjusting by slowing new residential construction starts, which now stand at their lowest level of the decade.

Spotlighting an interesting trend in the condo market, research suggests many of Canada’s older baby boomers and younger eco-boomers hold a preference for condos.

The low maintenance and smaller footprint are compelling points for the older generation, while the more affordable prices serve as an entry point for an aspiring younger generation of homeowners.

In a welcome surprise, April’s employment numbers showed an unexpected addition of nearly 36,000 new jobs compared to the anticipated loss of 50,000.

While this news is encouraging, the potential for future weakening in the labour market still poses a risk to overall housing demand.

Canada’s government remains firmly focused on supporting the housing market. The Bank of Canada cut the overnight rate to a record low and has made a commitment to keep rates at this level until mid next year. A commitment of this nature is unprecedented among central banks.

The Numbers That Drive Real Estate

1. Sales
2. Prices
3. Inventory
4. Mortgage Rates

According to the most recent data, existing home sales increased for the second month in a row. Home sales increased 7%, which built on the 10% gain the month before. The number of sold transactions now stands 18% above levels reported in January, when activity fell to the lowest level in a decade.

The monthly increases in activity were the most significant in British Columbia and Ontario. Sales were also up in the Northwest Territories, Manitoba, Quebec, and Newfoundland and Labrador.

Buyers are starting to take notice of lower prices, interest rates, and rising affordability conditions.

Average Home Price (in Thousands)

The pace of home price declines is tapering which is providing some glimmer of stabilization in the housing market. Home prices increased 2% from the previous month but is down 8% from the same time last year, which is the smallest year-over-year decline in six months.

The average home price currently stands at $288,641. The national average price continues to be skewed downward by lower activity in Canada’s more expensive housing markets, i.e., British Columbia, Alberta and Ontario which accounts for 67% of national activity. 7 out of 12 provinces and territories actually saw price increases.

Home Prices by Province
7 out of 12 Saw Increases

Inventory (Sales to Listing Ratio)

Market conditions moved toward balanced conditions due to increase in demand and fewer new listings. In the first quarter of 2009, there were 6% less homes entering the market compared to the previous quarter, which represents three consecutive quarters of declines in new listings.

Mortgage Rates

Average for: 25-Year Amortization,5-Year Term

Bank of Canada lowered its overnight lending rate to the lowest rate on record. As a result, mortgage rates decreased to 5.25% last month. Mortgage rates were 1.7 percentage points lower than the same time last year.

Recent Government Action

Bank of Canada Makes Historically Unprecedented Move

In an effort to stimulate the economy, the Bank of Canada has come to yet another historic cut in its interest rate policy on April 21. The Bank cut the overnight rate from .5 to .25%. This rate cut mostly influences traditional lending institutions but should also impact pricing in open markets as well.

The Bank has committed to keep rates as is until mid-2010. No known central bank has ever committed to anything of this nature, illustrating the Bank’s firm commitment to supporting the economy.