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 money for a down payment.
The Home Buyer’s Tax Credit, at current taxation rates works out to be a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed with the year to purchase and it is non-refundable. In addition, the home you purchase must be a ‘qualified’ home. If you are purchasing a home with a spouse, partner, or friend, the combined claim can not exceed $750.
To receive your $750 claim, you must include it in 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, condo, apartment or mobile home
- Can include a co-op corporation, that gives you ownership of the home
- You must intend to occupy the home within one year of the purchase
- 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 4 years
- You cannot have lived in a home owned by your spouse in the previous 4 years
- You must present documents supporting the purchase of the new home