Buying your first home doesn’t just come with excitement—it comes with a long list of expenses: legal fees, inspections, and moving costs, to name a few. Fortunately, Canada offers a simple way to ease that financial burden through the First-Time Home Buyers’ Tax Credit (HBTC).
This credit is a quick, no-fuss way to get a little something back when you file your taxes after purchasing your first home.
What Is the HBTC?
The HBTC is a non-refundable tax credit designed to help first-time buyers cover initial home-buying expenses. As of 2022, it offers:
- A 15% credit on up to $10,000 of qualifying expenses
- That’s up to $1,500 back on your tax return
It’s a small but valuable financial boost, especially helpful during the expensive transition into homeownership.
Who’s Eligible?
- You must be a first-time homebuyer (you haven’t owned a home in the last four years)
- The home must be your principal residence
- You must claim the credit in the same year the home was purchased
Bonus: The credit is also available if you are purchasing a home for a relative with a disability.
How Do You Claim It?
Claiming the HBTC is simple. Just enter the amount on Line 31270 of your tax return when you file for the year you bought the home.
If you bought the home with a spouse or partner, you can split the $10,000 between both returns—but the combined total cannot exceed $10,000.
Can You Combine It With Other Programs?
Absolutely. The HBTC can be used alongside:
- Home Buyers’ Plan (HBP) – up to $60,000 RRSP withdrawal
- First Home Savings Account (FHSA) – save up to $40,000 tax-free
- GST/HST New Housing Rebate – reclaim part of the sales tax on new homes
Why Use the HBTC?
It’s one of the easiest benefits to access as a first-time buyer. There are no applications to fill out—just check the box when you file your taxes. It’s your money—make sure you get it back.
