What tax benefits are available to a home buyer?
Home buyers’ tax credit
Qualifying home buyers can claim a non-refundable tax credit of up to $1,500 (maximum $10,000 credit amount at a 15% tax credit rate).
You can claim the credit if:
You or your spouse/common-law partner bought a qualifying home that you (or a relative with a disability) will live in within a year
You haven’t lived in another home owned by you or your spouse/common-law partner in the year of acquisition or the 4 years prior, unless you (or the relative you bought the home for) have a disability
To learn more, see First-Time Home Buyers’ Tax Credit.
GST/HST new housing rebate
The GST/HST new housing rebate gives you back some of the tax paid on your home. You don’t have to be a first-time home buyer to qualify. You can claim the rebate if you meet one of the following requirements:
You bought a new or majorly renovated home from a builder and you (or your relative) will live in the home.
You bought shares in a co-op for you (or your relative) to live in a new or majorly renovated unit.
You built or substantially renovated your (or your relative’s) main home, and the fair market value after construction is less than $450,000.
If you purchased your new home from a builder, the GST/HST rebate may have already been credited to you by the builder. To learn more, visit the CRA.
To learn more about claiming the GST/HST rebate for owner-built homes, visit the CRA.
Multigenerational home renovation tax credit
The Multigenerational home renovation tax credit helps homeowners with renovation costs to house a senior or disabled family member. Find out if you qualify at the CRA site.
Home Buyers' Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a specified disabled person. Currently the HBP withdrawal limit is $60,000. To learn more, visit The Home Buyers' Plan.
First Home Savings Account
A First Home Savings Account (FHSA) is a savings account with tax-deductible contributions and tax-free withdrawals for people buying their first home.
You can to contribute up to $8,000 each year for a lifetime maximum of $40,000. If you contribute less than $8,000, you can carry over the remaining amount to the next year. Income earned within the account is tax-free. For more info, visit the TurboTax Blog.
