First Time Home Buyer Tax Credit



The First Time Home Buyer Tax Credit was introduced by the Federal Government in January of 2009. As part of Canada's Economic Action Plan to assist Canadians, the first time home buyer tax credit was designed to help first time home buyers recover some of the costs associated with a home purchase.

At current tax rates, the first time home buyer would submit a claim for $5000 and receive a 15% rebate or $750 as a tax credit. These funds can help the first time home buyer recover a portion of their closing costs, such as land transfer taxes, legal fees, moving expenses, etc.

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Is it available for a purchase in 2011?
Yes, the first time home buyer tax credit is is still available to qualified first time home buyers who purchased a home in 2011.

If you or someone you know was a first time home buyer in 2011, then you could claim the $5000 on line 369 of your Schedule 1, Federal Tax form. You and your spouse could also split the claim, but the combined total can not exceed $5000.

What if I Purchased in 2009 or 2010 and forgot to claim?
No worries, if you purchased a home in 2009 or 2010 and forgot to claim this credit? Don't worry, you can still submit a re-assessment to the Canada Revenue Agency (CRA) to receive the $750 credit for one of those tax years!

How do I claim the tax credit?

First Time Home Buyer Tax Credit

You would submit a claim for the amount of $5000, on line 369 of Schedule 1 - Federal Tax Form, (see the image above) for the purchase of a qualifying home made in 2011. You must meet the following 2 criteria:

  1. You or your spouse or common-law partner acquired a qualifying home; and
  2. You did not live in another home that was owned by you (or your spouse or common-law partner) in 2011 (the year of acquisition) or in any of the four previous years. (2010, 2009, 2008 or 2007)

The CRA has a short promotional video that explains this as well, visit the CRA Website: www.cra-arc.gc.ca/vdgllry/wtchds/menu-eng.html?clp=ndvdls/hmbyrs-eng

Not a First Time Home Buyer?
You may still be eligible for this first time home buyer tax credit even if you are not a first time home buyer but are a person with a disability or if you are buying a home for a related person with a disability.

In this case, you do not need to be a first-time home buyer to get the Home Buyer Tax Credit (HBTC).

What is a qualifying home?
A qualifying home is a housing unit located in Canada: single-family home, semi-detached home, townhouse, mobile home, condo unit, or an apartment in a duplex, triplex, fourplex and apartment building.

For more information about the HBTC, visit the Canada Revenue Agency’s website: www.cra.gc.ca

Contact Us Today!

For a free, no-obligation conversation about current mortgage rates and your home equity loan needs, request a Complementary Mortgage Quote, or call Toll-Free 1-877-386-7745. We're waiting to help you.

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