First-Time Home Buyers’ Tax Credit
Ottawa Journal (January 21 – January 25, 2021)
Our Government recognizes that first-time home buyers can face additional expenses such as legal fees, land transfer taxes, and other costs involved in buying a family home. We also understand that buying a first home is a milestone for many Canadians and is likely the single largest investment they will ever make. To help make this dream a reality, our Government created the First-Time Home Buyers’ Tax Credit to support families as they make the leap into home ownership.
The First-Time Home Buyers’ Tax Credit provides tax relief to families and helps make the transition into home ownership more affordable.
In its first two years alone, more than 550,000 Canadians claimed the First-Time Home Buyers’ Tax Credit, which resulted in over $2.5 billion claimed. Not only are families keeping more of their hard-earned dollars in their pocket, but when people are buying homes, local tradespeople are being put to work, local businesses get a boost, and both the real estate industry and the local economy thrive.
If you or your spouse or common-law partner bought your first home this year, you can claim an amount of $5,000 on your income tax and benefit return. The amount only applies if you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
Equally important, if you or a person related to you is eligible for the Disability Tax Credit, you can claim the credit even if you are not a first-time home buyer as long as you are purchasing a house that is more accessible or better suited to the needs of the person with a disability.
Tax relief measures like the First-Time Home Buyers’ Tax Credit, are an essential part of our Government’s effort to stimulate the economy and to create jobs, growth, and long-term prosperity for Canadians.
The First-Time Home Buyers’ Tax Credit is part of our Government’s strong record of providing tax relief to Canadians. Thanks to these efforts, the average family of four now receives more than $3,000 in extra tax savings. The federal tax burden for all Canadians is now the lowest it’s been in half a century.
For more information about how this credit may apply to you and to find out about other credits and deductions for homeowners, I encourage you to visit the Canada Revenue Agency’s website at www.cra.gc.ca.