New Home Renovation Tax Credit influenced 39% of those surveyed
TORONTO, April 29 /CNW/ - Survey results released today by residential
mortgage company ResMor Trust Company show that 94% of Canadian homeowners who
are planning to do renovations between April, 2009 and February 1, 2010 will
use the Home Renovation Tax Credit (HRTC) introduced by the Federal Government
earlier this year. In fact, 39% of those surveyed said their decision to
renovate was positively influenced by the introduction of the HRTC. The survey
was conducted by Research Now with 1,000 Canadian homeowners from across the
country between April 6 - 9, 2009.
The HRTC applies to eligible home renovation expenditures of more than
$1,000, but not more than $10,000, resulting in a maximum income tax credit of
$1,350. Eighty-three per cent of survey respondents who plan to renovate, said
they intend to spend within the allowable amount to qualify for the tax
"Seventy percent of homeowners surveyed intend to renovate their homes
over the next year," observed Tracie Tesser, President and CEO of ResMor
Trust. "In addition to the Home Renovation Tax Credit, this high number may be
attributed to the current housing market, which has made it more attractive
for homeowners to stay in their homes due to decreased housing values in many
parts of the country."
Half of the homeowners surveyed plan to use their savings to pay for
their renovations while thirty per cent will use their line of credit. Seven
per cent said they will put the cost on their credit cards and five per cent
plan to add the cost to their current mortgage.
"Many homeowners who are buying or refinancing a home may not be aware
that they have the option of rolling renovation costs in with their mortgage,"
added Tesser. "A mortgage broker is a great source of information for how to
leverage home equity as a financing option."
Awareness of the HRTC is very high among Canadians across the country,
with 89% of those surveyed saying they are aware of the tax credit.
HRTC survey summary
- 70% of Canadian homeowners surveyed intend to renovate their homes
before February 1, 2010.
- 89% of Canadian homeowners surveyed were aware of the Home Renovation
Tax Credit (HRTC).
- 94% of Canadian homeowners who are planning renovations before
February 1, 2010 will use the HRTC.
- 83% of Canadian homeowners who are planning renovations will spend
within the allowable amount of the HRTC ($1,000 - $10,000).
- 39% of Canadian homeowners who are planning renovations said their
decision to renovate, or the amount they will spend on their
renovation, was influenced by the HRTC.
- Canadian homeowners surveyed indicated that they will pay for their
renovations using the following methods:
- 50% will use their savings
- 30% will use their line of credit
- 7% will use their credit cards
- 5% will add the cost to their current mortgage
- 8% will use other financing methods
About the survey
The Online Research Now OmniTaxi survey includes a nationally
representative sample of at least 1,000 Canadians 18 years of age or older and
was conducted between April 6 - 9, 2009.
About ResMor Trust Company
ResMor Trust Company is a federally regulated trust company focused on
providing residential mortgages, mortgage servicing and deposit products
through independent brokers. ResMor Trust also provides retail auto financing
to consumers and commercial lending to auto dealers.
ResMor Trust is a member of the Canada Deposit Insurance Corporation
(CDIC). Learn more at www.resmor.com
For further information:
For further information: Dawn Erceg, Director of Marketing
Communications, ResMor Trust Company, (416) 234-3170; Jason Graham, Argyle
Communications, (416) 968-7311 ext 229, email@example.com