In 2009, the Federal government introduced the First-Time Home Buyers’ Tax Credit (HBTC), a program which helps with the purchase of a first home. The $5,000 non-refundable HBTC amount provides up to $750 in federal tax relief.
An individual is considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years.
A qualifying home is generally considered to be a housing unit located in Canada that the individual or individual’s spouse or common-law partner intends to occupy as their principal place of residence no later than one year after its acquisition.
Special rules apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit.