As a first-time homebuyer you may qualify for a tax credit

Through Canada’s Economic Action Plan, the federal government introduced the First-Time Home Buyers’ Tax Credit (HBTC) to help with the purchase of a first home.  First Time Home Buyers may claim the HBTC on their income tax return for the year in which they make their purchase.

The HBC assists First Time Home Buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for First Time Home Buyers, who much also save for a down payment. 

The $5,000.00 non-refundable HBTC amount applies to qualifying homes acquired after January 27, 2009, and provides up to $750 in federal tax relief.  The value of the Home Buyers Tax Credit (HBTC) is based on $5.000 multiplied by the lowest federal income tax rate for the year.  So if the lowest income tax rate for 2018 is 15% the value of the HBTC if you purchased a qualifying home in 2018 would be $750.

An individual is considered a First-Time Home Buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years.  Special rules apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit.  In these situations, the HBTC can be claimed, even if the First-Time Home Buyer requirement is not met.  

A qualifying home is generally considered to be a housing unit located in Canada that the individual or individual’s spouse or common-law partner intends to occupy as their principal place of residence not later than one year after its acquisition.

When two or more eligible individuals purchase a home, the credit may be shared but the total credit amount claimed cannot exceed $5,000.  

For more information call 1-800-O-Canada or visit the Canada Revenue Agency website at www.cra.gc.ca. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-369-home-buyers-amount.html