The First-Time Home Buyers Tax Credit (HBTC) is a non-refundable tax credit for eligible home buyers who buy a qualifying home after January 27, 2009. If you have a disability or are buying a home for a relative with a disability, you do not have to be a first-time home buyer.
Value of the Home Buyers Tax Credit
The value of the Home Buyers Tax Credit is based on $5000 multiplied by the lowest federal income tax rate for the year. In 2013 the lowest federal income tax rate was 15 percent, and it remains the same in 2014, so the value of the HBTC would be $750.
Who is Eligible for the First-Time Home Buyers Tax Credit?
You are eligible if you
buy a qualifying home and
neither you nor your spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.
If you have a disability, or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to qualify for the Home Buyers Tax Credit. However, the home must be bought to be more accessible or to provide a better environment for the needs and care of the person with the disability.
What Homes Qualify for the First-Time Home Buyers Tax Credit?
To qualify for the First-Time Home Buyers Tax Credit, a home must be a housing unit located in Canada, including mobile homes, condominiums and apartments. Shares in co-op housing that provide an equity stake also qualify.
Also, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.
Sharing the Tax Credit
If you both qualify, you and your spouse or a friend can share the tax credit, but the total can not be more than the total allowable tax credit (e.g. $750 for 2013).
How to Claim the First-Time Home Buyers Tax Credit
If you're considering becoming a first-time home buyer, you might also be interested in the Home Buyers Plan.