Am I eligible for the HBTC?
You will qualify for the HBTC if:
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you or your spouse or common-law partner acquired a qualifying home; and
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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.
If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. However, the home must be acquired to enable the person with the disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
Am I a First Time Home Buyer?
You are considered a first-time home buyer if, in the four year period, you did not live in a home that you or your current spouse or common-law partner owned.
The four-year period:
Begins on January 1 of the fourth year before the year you withdraw funds; and ends 31 days before the date you withdraw the funds.
For example, if you withdraw funds on March 31, 2015, the four-year period begins on January 1, 2011 and ends on February 28, 2015.
If you have a spouse or common-law partner, it is possible that only one of you is a first-time home buyer.
What is a qualifying home?
A qualifying home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system and must be located in Canada. It includes existing homes and homes under construction.
The following are considered qualifying homes:
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single-family houses
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semi-detached houses
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townhouses
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mobile homes
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condominium units
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apartments in duplexes, triplexes, fourplexes, or apartment buildings
Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.
Who is considered a person with a disability for purposes of the HBTC?
For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount, if we ignore that costs for attendant care or care in a nursing home were claimed for the Medical Expense Tax Credit.
If I buy a house, can my spouse or common-law partner claim the HBTC?
Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $1,500.
Do I have to register the acquisition of the home under the applicable land registration system?
Yes. Your interest in the home must be registered in accordance with the land registration system applicable to where it is located.
My friend and I intend to jointly purchase a home, and we both meet the conditions for the HBTC. Can we both claim the credit?
Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $1,500.
How will I claim the HBTC?
Enter $10,000 on line 31270 of your return if you are not splitting the amount with your spouse or common-law partner.
You and your spouse or common-law partner can split the claim but the combined total cannot be more than $10,000.
When more than one person is entitled to the amount (for example when two people jointly buy a home), the total of all amounts claimed cannot be more than $10,000.
Do I have to submit any supporting documents with my income tax return?
No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA).
Is the HBTC connected to the existing Home Buyers' Plan?
No. Although some of the eligibility conditions for the HBTC and the Home Buyers' Plan are similar, the two are not connected. Your eligibility for the HBTC will not change whether or not you also participate in the Home Buyers' Plan.
In which taxation year can I claim the HBTC?
You can claim the HBTC in the taxation year in which the qualifying home is acquired.
If I purchase a condominium as my qualifying home in which occupancy takes place in one taxation year but the legal transfer of ownership only takes place in the subsequent taxation year, in which taxation year can I claim the HBTC?
You can claim the HBTC in the subsequent year in which your interest in the condominium (or a right in Quebec) will be registered in accordance with the land registration system or other similar system applicable where it is located.
Where can I get more information
about the new HBTC?
The CRA encourages taxpayers to check its Web site often—all new forms, policies, and guidelines are posted there as soon as they become available.