Goldhawk Fights Back: Fewer Canadians using plastic to pay for renovations

An Ipsos Reid survey, conducted for RBC Royal Bank, found 76 per cent of respondents planned to pay for their home improvements with cash or savings. That's up from just 70 per cent who said they'd pay in cash last year.

When put the other way, fewer people said they would use a credit card to pay for their home improvement. That number dropped to 24 percent this year from 32 per cent in 2008.

Home renovation projects will probably stay popular at least for the next few months. That's how long the Home Renovation Tax Credit will last.

The HRTC will give you a 15 per cent tax credit for investing in home improvements for your home, condo or cottage. All you do is claim the credit and attach the receipts when you file your return for your 2009 income taxes.

It applies to money you spend on renovations from January 27 this year to February 1 of next year. But just like your car insurance, there is a deductible before the government grants you the benefit -- $1,000. And there is a limit of $10,000.

So the amount you spend must be between $1,000 and $10,000. If we do the math, the most you can get back is $1,350 -- in other words, 15 per cent of $9,000.

The HRTC is also calculated on a per family basis. However, the claim can be split among family members as long as the total claim is not more than than the $1,350 limit.

It isn't enough that you own the dwelling slated for renovation. It must also be your principal residence or the principal residence of one of your family members.