First Time Home Buyers' Tax Credit

Unlock cost savings with the HBTC.

The HBTC (Home Buyers' Tax Credit), first introduced by the federal government in 2009, allows you to claim a certain amount on your annual tax return to catch a break on first-time home-buying costs.

The amount you can claim increased, effective January 2023, from $5K to $10K. This tax credit is only open to first-time home buyers. It's designed to help make up for what you'll spend on your mortgage closing costs — which can range from 1.5 to 4% of your home price amount.

Let's take a look at the details.

What is the Home Buyers' Tax Credit?

Otherwise known as the Home Buyers' Amount, this Government of Canada program:

• Allows you to claim up to $10K when buying a qualifying home for a non-refundable tax credit of $1,500.
• The value of your HBTC amount is based on your lowest personal income tax rate for the year you buy your home.
• Only the amount you can claim has changed; all other rules remain the same.

Are you eligible to claim the HBTC?

Both of the following need to apply to claim your tax credit as a first-time buyer:

• You (or your spouse or common-law partner) need to buy a qualifying home.
• You (or your spouse or common-law partner) haven't owned another home in the year of purchase or the previous 4 years.

Is your home purchase a multi-generational mortgage solution? Buying the home in an adult child's name may be possible, assuming they meet eligibility requirements as a first-time home buyer (check with your broker or accountant to confirm these details).

What makes a 'qualifying home' for this tax credit?

To qualify, the home must be considered your primary residence in Canada. You'll also need to reside in the house no later than one year after you purchase it.

A qualifying home (includes existing homes and homes under construction):

• Single-family, semi-detached houses, and townhouses
• Mobile homes (not all lenders provide mortgages for mobile homes; check with your expert broker)
• Most condos and apartments

You can still access the HBTC as a person with disabilities

You do not have to be a first-time home buyer to claim this tax credit if the following applies to you:

• You are eligible for the disability tax credit.
• You acquired the home for the benefit of a related person who is eligible for the disability tax credit.
• The home has to be or offers the ability to be, made more accessible or better suited to the needs of the person with disabilities.

How can you claim the HBTC?

According to the HBTC webpage, it's easy to claim your tax credit amount:

• For the taxation year in which you bought your home, enter $10,000 on line 31270 of your tax return if you are not splitting the amount with your spouse or common-law partner.
• If you split the claim, the combined total cannot exceed $10,000.
• You can't defer the HBTC claim to another year.

Get the first-time advice you need.

Learn more about the HBTC or other programs and rebates that may be available to you. Accessing these programs can go a long way to helping you into home ownership.

Give us a shout — we're here to help online, over the phone, or at a store near you.