First-time home buyers who acquire a qualifying home can claim a non-refundable First Time Home Buyers tax credit of up to $750 . The value of the HBTC is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022).
A qualifying home must be registered in your or your spouse’s or common-law partner’s name in accordance with the applicable land registration system and it must be located in Canada. It includes existing homes and homes under construction.
The following are considered qualifying homes:
- single-family houses
- semi-detached houses
- townhouses
- mobile homes
- condominium units
- apartments in duplexes, triplexes, fourplexes, or apartment buildings
Note
A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only gives you the right to tenancy in the housing unit does not qualify.
You must intend to occupy the home, or you must intend that the related person with a disability occupy the home, as a principal place of residence no later than one year after it is acquired.
Get in touch with Abdullah CPA for more information on First Time Home Buyers Tax Credit.
