Ninety-four per cent of Canadian homeowners who are planning to do renovations between April 2009 and February 2010 will use the Home Renovation Tax Credit (HRTC), according to survey results released Wednesday by residential mortgage company ResMor Trust Co.

The HRTC was introduced by the Federal Government earlier this year.

According to the survey, 39% of respondends 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 to 9.

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 credit.

“Seventy per cent of homeowners surveyed intend to renovate their homes over the next year,” says Tracie Tesser, president and CEO of Toronto-based 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 30% will use their line of credit. Seven per cent said they will put the cost on their credit cards and 5% 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,” adds 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.

IE