The home buyers tax credit is probably the least used government incentive when buying a home, so let’s fix that here and now. One of 3 main incentives available to Canadians that are buying a home, the home buyers tax credit is available along with the Home Buyers RRSP Plan and the Land Transfer Tax credit. 

Who Qualifies?

The Home Buyers Tax credit is available to first-time buyers OR anyone who has not owned a home in the previous 4 years and whom are buying:

  • A single detached home.
  • Semi detached home.
  • Condo
  • Row house or townhome
  • Live in multi unit property.

How much is the first time buyers tax credit?

The amount you would receive if you qualify is $750 at tax time. In other words, you get to claim up to $5000 in home buying expenses including legal fees, home inspection costs, and land transfer tax. Then the tax credit is calculated as 15% of the $5000 in expenses, for a maximum of $750.

How to Claim the First Time Buyers Tax Credit

When completing your taxes, use the $5000 amount on line 31270 of your tax return.

If you have a spouse or common-law partner, you can split the tax credit between the two of you – as long as the total claim is not more than $5000.

Be sure to hold on to the receipts and documentation sharing the expenses involved with buying your home. Like anything else income tax-related, it’s always a good idea to have a paper trail of your expenses. 

Also like anything income taxes, its always a good idea to discuss with a tax specialist or accountant as well. But with this said, this is a pretty straightforward way for many homebuyers to get $750 back at tax time.