Skip links
A woman smiling at her husband in their home

The first-time home buyer tax credit in Canada and other rebates

Finding additional financial support is a relief, and Canadian homeowners may be eligible for tax rebates or credits offered by the Canadian Government. Two examples are the First-Time Home Buyers’ Tax Credit and the Home Accessibility Tax Credit, which can provide qualifying homeowners receive a tax return

First-Time Home Buyers Tax Credit (HBTC) 

The HBTC is a non-refundable tax credit of $10,000 that you may claim if you’ve purchased property within that tax year, and it’s best to claim the rebate as soon as tax season arrives. To qualify for the return, you’ll need to have acquired a qualifying home and not have owned another home in the preceding four years. If you qualify for the credit, this may translate into a rebate of up to $1500 on your tax return.  

For those who share ownership of the property with a spouse or a common-law partner, the rebate can only be claimed per household, not per individual or homeowner. You can split the rebate but not claim more than $10,000 between owners.

A couple looking at home renovation plans.

Qualified homes 

If you purchase any of the following types of homes as your first, you may be eligible for the HBTC.  

  • Single-family houses 
  • Semi-detached houses 
  • Townhouses 
  • Mobile homes 
  • Condominium units 
  • Apartments in duplexes, triplexes, fourplexes, or apartment buildings 

Tax credits for existing homeowners 

Many people know about the HBTC, but the government offers other tax incentives to people who are already homeowners.  

Home buyers’ tax credit for people with disabilities 

Another way to qualify for the HBTC is through the Disability Tax Credit (DTC). The credit isn’t exclusively for first-time home buyers, so someone with a disability who is buying a house may still receive the rebate regardless of whether it is their first property or not. 

Being a first-time homeowner isn’t the main qualification, so the home buyer or relative of the home buyer has to be eligible for the DTC. The house has to be the primary residence for the disabled person and should be accessible and comfortable for them.  

The value of the credit is the same as the regular HBTC. The main difference is what it takes to qualify for the return.  

Home Accessibility Tax Credit (HATC) 

Another non-refundable tax credit for disabled persons is the Home Accessibility Tax Credit, which is worth up to $3000 if you make renovations to improve accessibility in the home. To be an eligible dwelling, the disabled person has to own, partially own, or inhabit that particular home.

New housing GST/HST rebate 

You can receive a return of up to $6,300 for properties worth $350,000 or less. For more valuable properties, the buyer may be eligible for partial rebates. The rebate program is for properties purchased directly from the builder and the buyers are the first dwellers, even if the house isn’t their first.  

Another way to qualify for part of the GST/HST rebate is by significantly renovating the property. The house has to have at least 90% of the interior changed and must be your primary residence.

Multigenerational home renovation tax credit (MHRTC) 

The Federal Government introduced the MHRTC for the tax year 2023. The return is worth a maximum of $7500, so the maximum claimable amount is $50,000. To be eligible for this credit, the renovation must be a secondary unit in your existing property for a disabled adult or senior to live in.

Potential tax credits on home equity loans 

Home equity loans are loans that have a significantly higher value than unsecured personal loans and are accessible to homeowners regardless of their financial history. The funds can be used for any purpose, including renovations, down payment for rental property, or business investments.  

You can find home equity loans from alternative lenders like Alpine Credits. They process applications faster than traditional financial institutions, and your credit score does not affect the results. As long as you own at least 25% of the equity in your home, you are eligible for a home equity loan.  

The interest on loans like HELOCs, personal loans, or second mortgages may be tax deductible in certain situations. If you use the money to buy an investment property to generate rental income or to start your own business at home, you may be eligible for tax refunds on the mortgage interest.   

Owning additional property for income generation is a great benefit, home equity loans offer more. You can also use them to finance renovations or to build a new property.

Apply now

Frequently asked questions

The maximum return you can get from buying your first home is $1500. On your tax form, you can submit a claim up to $10,000, but with the personal income tax rate of 15% in Canada, the final claimable amount comes to $1500.

As long as the first house you’re buying falls under qualifying homes, you are eligible for the HBTC. You may still qualify for the credit if you are a person with a disability, even if you’re not buying your first home 

If you forget to claim your tax credit, you’ll have to readjust your return for the specific year that you bought your home. You have to submit a file to the CRA that requests a reassessment of your tax returns. There is no evidence of the claim expiring, but the sooner you claim it, the better.  

One incentive from the Canadian Government is a grant worth 5% or 10% of the purchase price of the property to qualified home buyers, but the last day to apply before it officially discontinues is March 21, 2024. Some first-time homebuyers can also use their registered retirement savings plan (RRSP) to help buy a house – this is called the Home Buyers Plan (HBP)