Compare Listings

FIRST-TIME HOME BUYERS’ TAX CREDIT

As of January 27, 2009, first-time home buyers may be eligible for an income tax credit for their closing costs.  However, “first-time home buyer” can be misleading.  Please consider the following:

WHO:  An individual is considered a First-Time Home Buyer if neither the buyer, or his/her spouse or common law partner owned and lived in another home in the calendar year of the home purchase, or in any of the four preceding calendar years.

WHAT: The First-Time Home Buyer Tax Credit provides a credit on a maximum of $5000 for home purchase costs (including legal fees, land transfer taxes etc), meaning maximum tax relief of $750.  The individual/couple MUST intend to occupy the property within one year of the purchase to receive the credit, meaning it does not apply to properties purchased as investments.

WHEN:  The First-Time Home Buyer Credit is claimable for that taxation year in which the home is acquired.

WHERE: The First-Time Home Buyer Credit applies to properties purchased within Canada only.

WHY: The First-Time Home Buyer’s Credit was originally introduced as part of “Canada’s Economic Action Plan” to assist

For more information, contact Service Canada at 1-800-662-6232.

Share:
img

John Siarkas

Related posts

What you need to know about Home Inspections

So you've fallen in love with a new home and have decided to make an offer. But before you do,...

Continue reading
by John Siarkas

The Bank of Canada Brings Out The Big Guns

Following the surprise emergency 50 basis point (bp) rate cut by the Fed, the Bank of Canada...

Continue reading
by John Siarkas

BREAKING NEWS: Morneau Eases Stress Test on Insured Mortgages

Minister Morneau Announces New Benchmark Rate for Qualifying For Insured Mortgages The new...

Continue reading
by John Siarkas