First-Time Home Buyers Tax Credit (HBTC)

Canadian Income Tax Credit to Encourage First-Time Home Buyers

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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 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 $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 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 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 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 2014).

How to Claim the First-Time Home Buyers Tax Credit

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.

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