As part of the country’s economic action plan to help Canadians purchase their first homes, the First-Time Home Buyers tax credit was introduced. The purpose is to help recover expenses, such as land transfer taxes, legal costs, closing costs, and inspections, so that you have more money for your down payment.
At the current taxation rates, the credit works out to be $750. To be eligible for the First-Time Home Buyers credit, the home must meet the following criteria:
- Be a new or existing home in Canada.
- Be a semi, single, townhouse, condo, apartment, or mobile home. It can include a share in a cooperative housing corporation that allows you to own the home.
- The home must be occupied by you within 12 months of purchase.
To be eligible for the First-Time Home Buyers credit, you must meet the following additional criteria:
- The qualifying home must be purchased by you or your spouse.
- The home must be registered in either your spouse’s or your name.
- You can’t have owned a home for the previous 4 years.
- You can’t have lived in a home that was owned by your spouse for the previous 4 years.
- Documents supporting the purchase of the home must be presented.
Note: If you have a disability and are buying a home, you don’t need to be a first-time buyer to qualify for the credit.
If you’re looking to sell or buy real estate on the magnificent Southern Georgian Bay Waterfront, contact us, Nancy-Jo and Iain Gurr. We specialize in retirement and waterfront properties, luxury homes, cottage real estate, and first-time buying.