First-Time Home Buyer Tax Tips

Did you purchase your first-ever home in 2016? Then you may qualify for a bunch of money-saving tax rebates. Read on to learn more.

First-Time Home Buyers’ Tax Credit (HBTC)
You may be eligible for the First-Time Home Buyers’ Tax Credit if you or your spouse or common-law partner bought a qualifying home in 2016, are living in it or plan to live in it within one year, and didn’t previously live in another home owned by either of you. This credit lets you claim up to $5,000 for a non-refundable tax credit of up to $750.

You can take a look at the 2016 General Income Tax and Benefit Guide and the full package of schedules and forms. Then find out if you’re eligible here, and make sure you claim the HBTC on your income tax return.

Home Buyers’ Plan (HBP)
Although the Home Buyers’ Plan (HBP) has similar eligibility requirements as the HBTC (you must buy a qualifying home, plan to live in it, and not have previously lived in a home owned by you or your spouse or common-law partner), it’s completely different. If you have savings, then the HBP lets you withdraw up to $25,000 from your registered retirement savings plan (RRSP). This allows you to make a hefty down payment, tax-free.

The downside is that the withdrawal must be repaid within 15 years, since the HBP is considered a loan.

Find out if you qualify for the HBP here. If you don’t already own a home, consider saving for your down payment through an RRSP.

Land Transfer Tax (LTT) Refunds
First-time home buyers can receive a refund from the government of Ontario for up to $4,000 of the land transfer tax paid on the purchase of their new home. Similar conditions apply as for the HBTC and HBP. Find out if you qualify and read about the refund amounts and limitations here.

HST New Housing Tax Rebate
If you purchased a new home (or significantly renovated your home) then you may be able to reclaim some of the HST you paid on it through this federal government funded tax rebate. Read more about the rebate here, and get all the details on Canada Revenue Agency’s website.

As a first-time home buyer, you have access to several special tax rebates and refunds to make tax time less hard on the wallet. Read up and take full advantage! Then head on over to the Brookfield Residential Facebook page and tell us your best tax tips.