First Time Home Buyers Tax Credit
As a first time home buyer in Canada, you may be eligible to take advantage of two great money-saving benefits. The First time Home Buyers Tax Credit by the Federal Government assists Canadians in purchasing their first home. It was made to help recover closing costs such as; legal expenses, inspections, and land transfer taxes.
After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable. In addition, the home you purchase must ‘qualify’, more detail below. If you are purchasing a home with a spouse, partner or friend, the total claim cannot exceed $750.
How do you qualify for the First-time Home Buyers Tax Credit?
- You (or your spouse or common-law partner) bought a qualifying home in Canada
- The home will be your principal residence
- You must intend to occupy the home within one year of purchase
- You (or your spouse or common-law partner) did not own and live in another home in the year of purchase or any of the four prior years (first-time home buyer)
Home Buyers Plan
The Home Buyers Plan allows first time home buyers to withdraw money from your Registered Retirement Savings Plans (RRSPs) tax-free using a prescribed form. After a grace period you will have to repay this over 15 years.
Here are some of the conditions:
- You must be considered a first-time home buyer
- You will need a signed agreement to buy or build a qualifying home
- Contributions must be in your RRSP for at least 90 days before they can be used for the HBP.
To learn more about Home Buyers Plan features and eligibility requirements; visit Canada Revenue Agency (CRA)
You may also want to contact a Sunlite Mortgage Professional to make sure you’re taking advantage of all the benefits available to you as a first-time home buyer.
Our Sunlite Mortgage agents will walk you through the choices available and help you identify the most suitable mortgage product to your current situation. All while looking at your short to long term goals. Call a Sunlite Mortgage agent today at (877) 385-6267 and we will be happy to help you with a mortgage!
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