What’s in this article?

  • An intro to the first-time homebuyer’s tax credit (HBTC) 
  • How much is the HBTC?
  • How to know if you qualify 
  • How to claim the HBTC 
  • Can I claim any other tax credits or incentives? 
  • What’s next?

There are many things to think about when it comes to buying your first home, including what tax relief might be available to you.

For example, the first-time homebuyer’s tax credit – also known as the HBTC or the Home Buyer’s Amount – is available from the Government of Canada - Opens in a new window. Introduced in 2009, this is available to all eligible taxpayers. This shouldn’t be confused with the First-Time Homebuyer Incentive, which is a separate program available from the federal government.

Provided you meet the eligibility requirements, you could receive a non-refundable tax credit that can provide a little help financially as you become a homeowner.

How much is the HBTC?

The HBTC offers first-time buyers a $5,000 non-refundable income tax credit. If you bought your home during the qualifying tax year and meet all the necessary criteria, you can claim the amount when you file your tax return and receive a $750 rebate.

How to know if you qualify

You and anyone you purchase the home with (such as a spouse or common-law partner) should be considered first-time buyers by the government. This means that you haven’t lived in a home that you or your partner have bought in the past 4 years. You must also live in the home full-time and not use it as a rental property.

Properties that qualify

You could qualify for the HBTC - Opens in a new window if the home you’re buying is a:

  • Single-family house
  • Semi-detached house
  • Townhouse
  • Mobile home
  • Condominium unit
  • Unit in a duplex, triplex, fourplex or apartment building

People with disabilities

If you claim a Disability Tax credit on your tax return or are buying the home for someone who does, you could also qualify even if you’re not a first-time buyer. To meet the government’s eligibility criteria - Opens in a new window, you must:

  •  Purchase a home that’s accessible and/or better suited to your needs
  • Claim the credit in the same year you buy your home
  • Live in the home as your full-time residence no later than 1 year after buying it

How to claim the HBTC

On your tax return, make sure to fill in Line 31270 of your Schedule 1 with the amount of $5,000.As the tax credit is designed for first-time buyers, you can only claim it for 1 home - however, that doesn’t mean you need to claim it on 1 tax return. If you’re buying with a partner for example, you could claim the full $5,000 yourself, your partner could claim it, or you could split it between both of you. You have options just as long as the total amount claimed doesn’t exceed $5,000.