First-Time Home Buyers Tax Credit (HBTC)

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The First-Time Home Buyers Tax Credit (HBTC) is a non-refundable tax credit for eligible home buyers who buy a qualifying home. 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

The value of the Home Buyers Tax Credit is based on $5,000 multiplied by the lowest federal income tax rate for the year. In 2015, the lowest federal income tax rate was 15 percent, making the value of the HBTC $750.

Who Is Eligible?

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 relative 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.

Which Homes Qualify?

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 ​cannot be more than the total allowable tax credit (e.g. $750 for 2014).

How to Claim It

You claim the First-Time Home Buyers Tax Credit on Schedule 1 when you file your Canadian income tax return.

For more details, see Home Buyer's Amount from the Canada Revenue Agency.

If you're considering becoming a first-time home buyer, you might also be interested in the Home Buyers Plan.

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Your Citation
Munroe, Susan. "First-Time Home Buyers Tax Credit (HBTC)." ThoughtCo, Mar. 4, 2018, thoughtco.com/first-time-home-buyers-tax-credit-510791. Munroe, Susan. (2018, March 4). First-Time Home Buyers Tax Credit (HBTC). Retrieved from https://www.thoughtco.com/first-time-home-buyers-tax-credit-510791 Munroe, Susan. "First-Time Home Buyers Tax Credit (HBTC)." ThoughtCo. https://www.thoughtco.com/first-time-home-buyers-tax-credit-510791 (accessed April 26, 2018).