Posts Tagged ‘Home Renovation’


October 28th, 2010 No comments

TORONTO, Oct. 27 /CNW/ – A majority of Ontarians (61 per cent) intend to undertake home renovations within the next two years, a slight drop from 2009 (down six per cent) but consistent with the national average (62 per cent), according to the 2010 RBC Home Renovation Survey.
While renovation planning remains popular in the province, balancing the household budget is a significant concern for Ontario homeowners with 80 per cent noting they are experiencing anxiety over their financial situation.
“Our research consistently indicates that Canadians are focusing on managing their finances and paying down debt, but they are clearly still intent on investing in their homes,” said Doug Crowe, vice-president, Mortgages, Greater Toronto Area, RBC. “Renovations don’t have to break the household budget if you get the right advice before diving into home improvement projects. A financial advisor can help you successfully balance your finances while also investing in what is often your largest asset – your home.”
Many Ontarians believe that staying within a set budget is easier said than done according to the RBC survey. While 68 per cent of homeowners had budgets in mind when completing renovations over the past two years, 51 per cent overspent and of those who exceeded their budgets, one-third (35 per cent) did so by between 11 and 20 per cent. The biggest renovation mistake identified by Ontario homeowners is “going over budget” (29 per cent), followed by “using the wrong contractor or tradespeople” (18 percent) and “doing the job myself” (13 per cent).
Nevertheless, the majority of Ontario homeowners are now “reno debt” free with 60 per cent saying that they have already paid off the costs associated with renovations completed in the past two years.
Ontarians also indicate they are settled in their homes with almost half (44 per cent) saying they have lived in the same home for more than 10 years and 40 per cent expect to remain in their current homes for more than the next 10 years. Of all the province’s homeowners, a solid majority (60 per cent) responded that they would rather renovate rather than sell and move if their home required major renovations and they had a choice.
Transmitted by CNW Group on : October 27, 2010 05:00

Categories: Mortgages Tags:

2009 Home Renovation Tax Credit

April 30th, 2009 No comments

The Home Renovation Tax Credit (HRTC) can help improve the value of your home.

Renovating your home is an investment in the long term value of your home. Here’s how the 2009 Home Renovation Tax Credit can work for you. Canadian homeowners can claim a 15% non-refundable tax credit for eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350 ($9000 x 15%). Taxpayers can claim the HRTC when filing their 2009 tax return.

What is the eligibiliy period for the HRTC?

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.

Who can claim the HRTC?

Eligibility for the HRTC will be family-based which means the credit can only be claimed once per family. A family is generally considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner. Family members with joint ownership will be able to share the credit. The credit can be claimed on eligible expenditures incurred on one or more of an individual’s dwellings. Renovations to houses, cottages and condominium units that are owned for personal use are eligible for the HRTC.

What should you do?

Keep your original receipts for eligible home improvement purchases and labour (eg. contractors) and submit them for a tax credit when you complete your 2009 tax return.

What types of products, services and expenses are eligible?


_ Renovating a kitchen, bathroom or basement

_ New carpet or hardwood floors

_ Building an addition, deck, fence or retaining wall

_ A new furnace or water heater

_ Painting the interior or exterior of a house

_ Laying new sod

_ Labour costs

_ Professional fees

_ Building materials

_ Fixtures

_ Equipment rentals

_ Permits


_ Furniture and appliances (refrigerator, stove, couch)

_ Purchase of tools

_ Carpet cleaning

_ Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)


Source: Canadan Revenue Agency and the Department of Finance Canada for more information.






Categories: Reviews Tags: , ,

Home Renovation Financing Options

March 2nd, 2009 No comments

Whether you intend to finance your renovation yourself or borrow money, you should talk to a financial adviser and to your lender before you make firm plans. They can help you understand your options and advise on how much you can borrow. This information will help you plan realistically.
Your own resources: For smaller renovation projects, you may consider self-funding material costs, especially if you plan to do the work yourself.
Credit card: Likewise, you can use your credit card to pay for materials for smaller renovations. But be careful not to carry the balance for too long as credit card interest rates can exceed 18%.
Personal loan: With a personal loan, you pay regular payments of principal and interest for a set period, typically one to five years. You also have the option of a fixed or variable interest rate for the term of the loan. The interest rate on a personal loan is typically less than that of a credit card. Unlike a line of credit, once you pay off your loan you will have to reapply to borrow any new funds needed.
Personal line of credit: It is ideal for ongoing or long-term renovations since it lets you access your funds at any time and provides a monthly statement to help track expenses. A line of credit offers lower interest rates than credit cards, and charges interest only on funds used each month. And, as you pay off your balance, you can access remaining funds, up to the line of credit’s limit, without having to reapply.
Secured lines of credit and home equity loans: These options offer all the advantages of regular lines of credits or loans, but are secured by your home’s equity.
Mortgage refinancing: When funding major renovations, refinancing your mortgage lets you spread repayment over a long period at mortgage interest rates, which are usually much lower than credit card or personal loan rates. This type of financing can allow you to borrow up to 80% of your home’s appraised value (less any outstanding mortgage balance).
This provides an overview of financing options available to you. But also make sure to
research grants and rebates offered by the federal and provincial governments and local utilities to help fund your next renovation project.
(Source: CMHC)

Whether you intend to finance your renovation yourself or borrow money, talk to your Verico designer mortgage broker and to your lender before you make firm plans.

Charmaine Idzerda (AMP)
Mortgage Broker (FSCO Lic#: M08000747)

VERICO Designer Mortgages Inc. (FSCO#: 10194)

Office: (905) 336-5997