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, so you can save more for money for a down payment.
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. To receive your $750 claim, you must include it with your personal tax return under line 369.
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
• To personally be eligible for the First-time Home Buyers’ Tax Credit, you must also 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 home