Home Buyers’ Tax Credit

In 2009, the Federal Government introduced the First-Time Home Buyers’ Tax Credit (HBTC), through Canada’s Economic Action Plan. The HBTC was intended to assist first-time home buyers with the costs related to the purchase of a home, recognizing it is difficult for many buyers to save for a down payment. Canadians buying a home after January 29, 2009 can claim the HBTC on their income tax return for the year in which they make their purchase.

What is the value of the credit?

The value of the HBTC is based on $5,000.00 multiplied by the lowest federal income tax rate for the year. In 2013 for example, the amount of the HBTC would have been $750.00.

Who is eligible for the credit?

You qualify for the credit if you purchase a housing unit located in Canada, 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 preceding four years.

How do I claim the credit?

The HBTC is claimed on Schedule 1 of your Canadian Income Tax Return. CRA may request documentation supporting the purchase transaction, so save all related documents in your files.

For further information, please contact us or your accountant. CRA has an informative video at this link:

First-time home buyers’ tax credit

Peter Robinson (56 Posts)

Peter G. Robinson is an accomplished and skilled general practice lawyer in Calgary, Alberta. Over his 20 year career, Peter has carved out his niche in Residential Real Estate, Wills & Estate Planning, and Probate Applications.

Uniquely available to his clients, Peter is a calm and patient communicator who easily puts his clients at ease with straight-forward explanations of legal concepts. Blogging is his latest venture to cultivate awareness of NW Calgary Law, a law firm where he is the hands-on leader of an enthusiastic team dedicated to prompt and efficient service.

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