April 30, 2015
By means of the Conservative Economic Action Plan, the Government of Canada aimed to lighten the fiscal load of first-time home buyers when it introduced to general applause the First-Time Home Buyers’ Tax Credit (HBTC). In the years since that budget was tabled, the HBTC has proved a favourable cornerstone of the 2009 federal economic strategy. And, yet, there are undoubtedly still some first-time buyers that may be unaware of its existence and potential benefits.
For those who find the latter statement applies to them – or, for that matter, any first-time buyer aware of the HBTC but not its finer points – it is imperative to take advantage of the credit the one time it is available. In addition, it is important to read over the particulars of the initiative to gather just how it applies to your home purchase. Some of the stipulations are simple, sure, but others are rather complicated.
For instance, the more general notes pertaining to the HBTC include that it is a $5000 non-refundable credit that aids to offset costs associated with the initial purchase of your first home, including legal fees, land transfer taxes and disbursements, among other items. It also provides those eligible for the credit with up to $750 in federal tax relief on any qualified home purchased after Jan. 27, 2009.
Like any of the many decisions that surround a sound home investment, utilizing the HBTC to minimize the burden of a first-time home purchase is essential to lessening long-term debt. The key to that equation, of course, is not only making use of the initiative but determining the ways to maximum the means in which to profit from the generous government credit.
To see if the HBTC qualifies to you view the CRA’s Home buyer’s tax credit page.