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    Buying a home is a big decision, and due to the large sum of money being transferred, you want to be sure you have all of your bases covered. One thing every new homeowner should be taking advantage of is the First-Time Home Buyers’ Tax Credit (FTHBC).In 2009, Revenue Canada introduced FTHBC to benefit first time home buyers like yourself. If you qualify, you are eligible for a 15% income tax credit on a maximum of $5,000 of home purchase costs from the year you purchased the house. Land transfer taxes and legal fees serve as some examples.

    In order to qualify for this credit, you must meet the following requirements:
    • You or your spouse must purchase a qualifying home (see below)
    • You or your spouse’s name must be on the registry of the house
    • You cannot have owned and lived in a home by you or your spouse in the past four years
    • You must present documents supporting the purchase of the home
    Your home must also meet the following requirements:
    • The home must be within Canada
    • It can be a single, semi, townhouse, mobile home, condo, or an apartment
    • You must occupy the home within one calendar year of the purchase date


    Saving up for a down payment on a home can take a considerable amount of time. For first time home buyers in Canada however, there are ways making a down payment can be done more easily. With the ability to withdraw up to $25,000 from your RRSP tax-free, through the Canada Revenue Agency’s Registered Retirement Savings Plan, the RRSP Home Buyer’s Plan (HBP), helps Canadians get that first down payment made much faster than originally thought.

    • The HBP can also be combined up to $50,000 if the home is being purchased in conjunction with another eligible first time homebuyer.
    • he loan is completely tax-free, as long as it is repaid within a 15 year period.
    • Existing homeowners can also use an HBP to purchase an accessible home or a home for a disabled dependent relative. Said individual must qualify for the Disability Tax Credit (DTC) and this home must be suited to fit all of their needs.
    To qualify as a first-time homebuyer, the following criteria must be met:
    • The RRSP funds you borrow must be present in your account for at least 90 days after the withdrawal.
    • You cannot have owned a home within the previous four years.
    • If you’re buying with a spouse (or common law partner) who is not a first time homebuyer, you cannot have lived in a house they owned for 4 years.
    • You have entered into a written agreement to buy or build a qualifying home.
    • You intend to live in the home within one year of purchase as your primary residence.
    • If you have used the HBP before, you must pay the previous balance.
    • The withdrawal from your RRSP within 30 days of acquiring the home.
    • You must be a resident of Canada.


    The HST New Housing Rebate program allows you to claim a rebate on part of the HST you pay on the purchase price of either a newly constructed home or cost of building the home. You can claim a rebate on a newly renovated home, a purchase of a new mobile home, or when your home is destroyed in a fire and is subsequently rebuilt.

    The purchase price of resale homes are exempted from the HST whereas the purchase price of newly constructed homes are subject to HST.

    New home buyers can apply for a 36% rebate on the federal portion of the HST of the purchase price to a maximum of $6,300 for homes costing $350,000 or less. For new homes priced at $350,000 to $450,000 the rebate will be reduced proportionately. Homes priced over $450,000 would not receive a rebate on the federal portion of the HST.

    For the provincial portion of the HST, new home buyers can apply for a 75% rebate applicable to the purchase price to a maximum of $24,000.



    First-time buyers of new and re-sale homes are eligible for rebates on provincial and Toronto land transfer taxes. The maximum that first-time home buyers can receive for provincial land transfer tax (LTT) is $2,000 and for the Toronto LTT its $3,725.

    The provincial LTT is payable anywhere in Ontario, including Toronto. As mentioned before, the maximum that a first-time buyer can receive for the provincial LTT is $2,000. For re-sale homes, the provincial rebate only applies to first-time buyers who entered into Agreements of Purchase and Sale after December 13, 2007.

    Toronto LTT is payable only for properties in the City of Toronto. The maximum a first-time home buyer can receive is $3,725. The Toronto LTT rebates are in addition to any provincial LTT rebate the buyer qualifies for.

    The buyer is considered to be a first-time buyer for the provincial and Toronto LTT if they are at least 18 years of age and must not have previously owned a home anywhere in the world at anytime. If a spouse is involved, the spouse cannot have owned a home or had any ownership interest in a home while he/she was the purchaser’s spouse.