To buy your first home is a big deal and an important decision.

First-Time Home Buyers’ Tax Credit

First-Time Home Buyer’s Credit (FTHBC) is a government program geared towards buyers like you. The objective is to reduce costs associated with purchasing a home. As a first time buyer, you are eligible for a 15% income tax credit on a maximum of $5,000 of home purchase costs such as legal fees and land transfer taxes. It can be claimed for the taxation year that you acquired the house.

Are you considered a first-time home buyer?

You are considered to be a first time buyer if neither you and your spouse or common-law partner has owned and lived in another home in the year of the purchase or in any of the four previous years.

With this incentive, Government of Canada provides:

• Newly Constructed Home: 5% or 10% for a first-time purchase 
• Resale of Existing Home: 5% for a first-time purchase 
• New or Resale of Mobile Home: 5% for a first-time purchase 

You can qualify for the first-time home buyer rebate if your annual income is of $120,000 or less, and the incentive amount cannot be greater than four times the participant’s qualified annual income.  Our insured mortgage specialists will get you approved. 

FTHBC Example

Raj wants to buy a new home for $400,000.

Under the First-Time Home Buyer Incentive, Raj can apply to receive $40,000 in a shared equity mortgage (10% of the cost of a new home) from the Government of Canada. This lowers the amount she needs to borrow and reduces her monthly expenses.

As a result, Raj’s mortgage is $228 less a month or $2,736 a year.

Find Out More About FTHBC Rebate

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