Raj Khurana Realtor Calgary Region Homes

You probably should wait to buy if:

- Your job is on the line.

- You want to pay higher interest rates. Interest rates are at a record low level, with prime rate being 3%.

- You are 100% sure that the house you want to buy will be available when you are ready to buy.

- You want to continue paying someone else's mortgage by continuing to live in a rental accomodation.

The question is whether the market has bottomed out. I wish someone knew the answer to this. But this is certain that the market will rise abruptly before anyone knows. As warren Buffet says "we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful".

So go ahead, check your credit, get preapproved and buy before the house you want to buy has a sold sign!

Great news for all Canadian First Time Homebuyers

Withdrawal Limits under the Home Buyers' Plan proposed to be increased

The Home Buyers' Plan (HBP) allows first-time home buyers to withdraw up to $20,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home. Unlike regular RRSP withdrawals, HBP withdrawals are not included in an individual's income when withdrawn. Amount withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the ear of the withdrawal. Otherwise the amount gets included in the individual's income.

To provide first-time home buyers with additional access to their RRSP savings to purchase or build a home, Budget 2009 proposes to increase the HBP withdrawal limit to $25,000 from $20,000 in respect of withdrawals made after January 27, 2009.

With the $5,000 increase to the withdrawal limit, two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 from their RRSP funds toward the purchase of a home in Canada.

Hope this will help many homebuyers put a bigger down payment and help thm qualify for a mortgage more easily in this tighter market.

First-Time Home Buyers' Tax Credit

To assist first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, Budget 2009 proposes to introduce a First-Time Home Buyers' a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

There could be no better time to buy with these benefits coupled with the lowest ever interest rate.

Happy buying!