Your hard work has finally paid off and you are able to afford buying a house! Of course, buying your first house is intimidating since there is so many new responsibilities and things to budget for.
One of the nice things is you will be able to qualify for the First Time Home Buyers’ Tax Credit, a non-refundable tax credit you can claim at tax time to help recover closing costs, legal expenses, and appraisals and inspections.
How Do I Know If I Am Eligible?
If you (and your partner, if applicable) have not owned a home in the last four years, you qualify as a first-time home owner. You must claim it within the same year you purchased the qualifying house and intend to own it for at least one year.
Which Houses Qualify?
Most homes in Canada qualify:
- Single-family home
- Semi-detached home
- Mobile home
- Homes under construction
How Much Tax Credit Can I Claim & How Is It Calculated?
You can receive up to $750 in tax credit on your first home.
It is calculated by multiplying the lowest income tax rate for the year by $5,000. The remaining credit will be what you receive. If you and your partner both apply, your combined total cannot exceed $750.
The Land Transfer Tax Refund
As a first-time buyer, you could also qualify to receive the Land Transfer Tax Refund. If you purchased a house with your partner, neither of you can have ever owned a home before, not even within the last four years. You can receive a refund on the first $368,000 on your home which the max amount being $4,000.
The home cannot be gifted to you or inherited. It must be purchased by you and you must apply within 18 months of purchasing. You can apply online.
Are you a first-time buyer? Our agents can help you:
Agent Name: Kim A. | View Agent Profile>>
Serving Area: Kitchener-Waterloo
"I treat every transaction as though it were my own and explain what is happening every step of the way."
Agent Name: Randy M. | View Agent Profile>>
Serving Area: Durham
"Decades of experience selling both residential and commercial real estate within Durham Region."