If you want to take advantage of the $1,350 home renovation tax credit, your renovations will need to be completed before February 1, 2010. So if you’ve been meaning to get a new roof, new flooring, or update that bathroom or kitchen, now is the time to do it.

Renovations completed between January 28, 2009 and February 1, 2010 are eligible for a 15% tax credit applied to your renovation expenses after the first $1,000. The maximum tax credit is $1,350, and is deducted directly off of your taxes owing. A wide range of renovation expenses qualify for the credit.  To find out what qualifies, visit the Canada Revenue Agency’s website.

There is further grant money available under the ecoENERGY retrofit and other government initiatives if your renovation plans include energy-saving home improvements.  You can even apply both these incentive programs to the same renovation project.

If you have some equity in your home and are looking to complete a larger renovation project, you can use that equity to fund your project through refinancing.  This way, you can roll your renovation costs into your mortgage for one easy monthly payment.  Then, once you receive your tax return, you can use prepayment privileges to put equity back into your home.  Incredibly low mortgage rates that are currently available also mean you can save thousands in interest expenses over the remaining length of your mortgage term.

The right renovation project will increase the value of your home.  In this way, you are building on your largest investment and are able to enjoy the improvements every day.

If you are interested in renovating, a great place to start is by contacting Vertuity Mortgage.