Tax Credits for First Time Home Buyers

$5,000 Tax Credit When You Make a Purchase of a Qualifying Home.

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Last updated: May 2019

Well, it's tax time and the Canada Revenue Agency wants to let you know that first time home buyers are eligible to get some cash back when they file their taxes under a program called the Home Buyer Tax Credit or HBTC.

You will qualify for the HBTC if:

  • you or your spouse or common-law partner acquired a home that you occupy; and
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

There are some other exceptions, for example if you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. 

$5000 looks like a big number as it's a deduction from income. What it really means is about $750 extra in your pocket.

CRA website link

 

Can you mortgage qualify? Find out here.

Topics: Buying a home, Mortgages 101, Assistance Programs