First Time Home Buyer Tax Credit

What is the First-Time Home Buyers’ Tax Credit?

The First-Time Home Buyer’s Tax Credit is a $5,000 non-refundable tax credit. If you’re buying a home for the first time, claiming the first-time homebuyer credit can land you a total tax rebate of $750. While $750 isn’t a life-changing amount of money, it can make buying your first home a little bit easier. The First-Time Home Buyer’s Tax Credit was first introduced in 2009 and is available to all qualifying Canadian taxpayers.

The First-time Home Buyers’ Tax Credit was introduced as part of ‘Canada’s Economic Action Plan’ to assist Canadians in purchasing their first home. It is designed to help recover closing costs such as legal expenses, inspections, and land transfer taxes.

The Home Buyers’ Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable. In addition, the home you purchase must be a ‘qualified’ home, described in more detail below. If you are purchasing a home with a spouse, partner or friend, the combined claim cannot exceed $750.1

To receive your $750 claim, you must include it with your personal tax return under line 369.2

How do you qualify for the First-time Home Buyers’ Tax Credit?
In order to be eligible for the First-time Home Buyers’ Tax Credit, your home must meet the following requirements:

  • Be within Canada
  • Be an existing or new home
  • Be a single, semi, townhouse, mobile home, condo, or apartment
  • Can include a share in a co-operative housing corporation that gives you possession of the home
  • You must intend to occupy the home within one year of purchase
  • In order to be eligible for the First-time Home Buyers’ Tax Credit, your home must meet the following requirements:
  • You or your spouse must purchase a qualifying home
  • The home must be registered in either your name or your spouse’s name
  • You cannot have owned a home in the previous four years
  • You cannot have lived in a home owned by your spouse in the previous four years
  • You must present documents supporting the purchase of the home3
Does my home qualify?

The vast majority of homes in Canada qualify for the First-Time Home Buyer’ Tax Credit, but there are a few requirements to keep in mind. 
Your home qualifies if:
  • It is a single-family, semi-detached, townhouse, mobile home, or condo,
  • It is an existing or new construction home located in Canada,
  • You’ve moved into the home within one year of making the purchase, and
  • The home is listed as your principal residence and is registered under your name or your partner’s name.
Note that for cooperative housing units, shares that provide the right to tenancy won’t qualify. Only shares that provide possession of the unit will be eligible.

Home Buyers’ Tax Credit for people with disabilities

If you have a disability and are purchasing a home, you do not need to be a first-time home buyer to claim the Home Buyers’ Tax Cedit, where a person with a disability is defined as a person who can claim a disability amount on their tax return in the year the home is purchased. 
Claiming the credit for people with disabilities
If you’re a person with a disability and you claim the Disability Tax Credit on your tax return, you can also claim the First-Time Home Buyers’ Canada Tax Credit. This applies even if you’ve already owned a home in the past. There are a few criteria that you’ll need to meet:
  • You must claim the disability amount on your tax return in the same tax year that you purchase the home,
  • The home must be suitable for the disabled person’s needs (ie your needs), and
  • You must occupy the home within one year of purchasing it.

RELATED TOPICS


FIRST TIME HOME BUYERS TAX CREDIT
HOME BUYERS TAX PLAN
LAND TRANSFER TAX REBATE
FIRST TIME HOME BUYER TAX PROGRAMS
FIRST TIME HOME BUYER LOANS

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Lola Oduwole

RE/MAX All Points Realty

101, 1020 Austin Avenue  Coquitlam,  BC  V3K 3P1 

Phone: 6048096317

lolaoduwole@yahoo.ca

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Phone: 6048096317

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RE/MAX All Points Realty

101, 1020 Austin Avenue  Coquitlam,  BC  V3K 3P1 

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