Buying your first home is a dream come true for many Canadians. In 2009, The Canadian Government developed the first-time homebuyer’s tax credit to make that dream a little easier for many Canadians. If you are a prospective first-time home buyer in Canada, this article will give you the ins and outs of the first-time home buyer tax credit in Canada.
The First-Time Home Buyer Tax Credit
The first-time homebuyer tax credit is a program by the Canadian federal government aimed at supporting eligible persons who are buying their first home. It is a non-refundable $5,000 tax credit that comes with a $750 total tax rebate. The government essentially reduces the tax bill of Canadians who buy their first home.
To quality, first-time homebuyers only need to buy a qualifying property in Canada. Qualifying homes must meet the following requirements, which most properties in Canada will automatically.
- Must be a home for a single-family, semi-detached, townhouse, mobile home, or condo
- An existing or new construction home within Canada
- Must have moved into the home within a year of paying for it
- Must be named as your principal residence and registered under your name or your partner’s name, who must be a first-time homeowner