FIRST TIME HOME BUYER TAX CREDIT

First time home buyers who close on the purchase of a home AFTER January 27, 2009 may be eligible for at 15% income tax credit for closing costs.

The Government of Canada assists eligible first-time home buyers with costs related to the purchase of a home or condo with the following tax benefits:

• The First-Time Home Buyers’ Credit (FTHBC) provides a 15% credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), the maximum tax refund is $750.
• Applicable to first-time buyers purchasing a home closing after January 27, 2009.
• The FTHBC is claimable for the taxation year in which the home is acquired.
• An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

See the Revenue Canada Website or Call Service Canada directly at 1-800-662-6232 for more details