Congratulations! Deciding to purchase your first home is a big and important decision. Although there are many fees and expenses involved in buying any home, an investment in real estate is statistically one of the most sound financial decisions you can make. And as a first time buyer, there are many grants, loans and tax credits available to help lessen the blow.
The First Time Home Buyers's Tax Credit (often referred to as FTHBC or HBTC) is a credit that you claim on your taxes for the year in which you acquired your first home. This government program allows you, as a first time home buyer to claim a 15% income tax credit on a maximum of $5000 of home purchase costs (ie. lawyer's fees, interest adjustments, land transfer taxes etc.).
In order to qualify for this tax credit, you or your partner must not have owned a home in the past 4 years and must be purchasing a home that qualifies for this program. In addition, you must be planning on residing in the property within one year of its purchase.
