First-Time Home Buyers' Tax Credit
The Canada Revenue Agency put out this handy video to inform first time home buyers about the tax credit that is available to qualifying home buyers.
The credit is based on your home purchase up to $5,000 and it's calculated at 15% of that qualifying amount. Therefore, 15% of $5,000 is $750 which is the most your First-time home buyers tax credit can be.
The First-Time home buyers' tax credit is a non-refundable credit. As a non-refundable tax credit, it reduces your federal tax payable, but, if it exceeds your federal tax payable, the government will not send you a payment for the amount in excess of your federal tax payable.
Who qualifies for the credit?
- First-time home buyers
- People who have not owned a home in the past 5 years
- Disabled people or people buying a home for a disabled person
What type of homes qualify?
- Detached houses
- Semi-detached houses
- Freehold Townhouses
- Condo Townhouses
- Condo Apartments
- Shares in a co-op that give you ownership of a specific unit
- Even mobile homes
How do you get the credit?
- Just fill in the amount on Line 369 of your federal tax return
For more information on the Home Buyers Tax Credit click www.cra.gc.ca/hbtc
For more information on the local Real Estate Market contact your Full-Time Professional Realtors, Dennis & Kim Downey