Canada’s $10000 Tax Credit for First-Time Home Buyers: Check Eligibility Criteria & How to apply

In Canada, purchasing a new house is like a dream to low- and moderate-income families. As inflation is increasing leading to an increase in  the prices of almost all the essential products and services. Buying a house is like a big step for new buyers,

so to provide some financial relief to those who are planning or have recently bought a new house, the federal government of Canada is going to provide a $10,000 tax credit across the country. Let’s get into the details of the $10,000 Tax credit in this below article. 

Canada’s $10000 Tax Credit for First-Time Home Buyers

The home buyers’ tax credit (HBTC) is a non-refundable tax credit available to those who have bought or planning to buy a new house. People who claim this credit can save up to $1,500 on the taxes they owe. Through this credit the Canadian Government aimed at making the ownership of houses more affordable and approachable for those families who have a limited source of income. 

The maximum amount that can be claimed from this credit is $10,000. Those people who want to claim the credit need to apply for it during their income tax return. The below article will give you comprehensive information about who can claim and how to claim this credit.

Highlights of Canada $10,000 Home Buyers’ Tax Credit 

Title	Canada $10,000 Home Buyers’ Tax Credit
Country	Canada
Department	Canada Revenue Agency
Benefit Name	Home Buyers’ Tax Credit (HBTC)
Beneficiaries	New house buyers, people suffering from some disability
Maximum Credit Amount	$10,000
Tax Saving	Up to $1,500
Post Category	Finance
Official Website	https://www.canada.ca/

Eligibility Criteria 

To receive the home buyers’ tax credit, individuals have to qualify these below standards to become eligible for the Credit:

1. The HBTC is available mainly for those who have recently purchased a new house or are planning to buy one in Canada. 
2. Individuals- Single individuals buying their new house are eligible for the credit. 
3. Single parents or common-law partners- If a single parent is buying a new house with their common-law partner can also qualify for the tax credit. 
4. Disabled People- People who are suffering from some disability can also claim this credit even though they are not purchasing a new house. 
5. Temporary house owners- People who are buying their first home and planning to stay there temporarily can also claim this credit.
6. Income Tax Return- People applying for the tax credit must file their tax return each year and their tax must not be less than $1,500 as the credit cannot surpass the tax bill.
7. People applying for the credit must not have been a house owner in the past 4 years. 

Types of houses that qualify the tax credit

The types of houses that qualify the house buyers’ tax credit are mentioned below: 

1. Single-family houses
2. Townhouses
3. Mobile houses
4. Duplexes
5. Apartments
6. Semi-detached houses

Claiming Procedure of Home Buyers’ Tax Credit

1. File Income Tax Return- The very first step of claiming the HBTC is to file the income tax return to Canada Revenue Agency. 
2. Apply for the credit- While filing the income tax return, include the house buyers’ tax credit in the form 31270.
3. Documentation- Provide all the necessary documents to the CRA such as your proof of purchasing a new house and other relevant documents asked by the CRA. 

Note- Claimants are not required to fill any application form for the tax credit, they can simply include the HBTC during their income tax return. 

Points to keep in mind while applying for House Buyers’ Tax Credit

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1. Before applying for the tax credit make sure that you satisfy all the eligibility requirements. 
2. Keep all the important and necessary documents handy. It includes your proof of house purchase, proof of residency, etc. If you are suffering from some disability and applying for the credit, then make sure to keep some medical or other relevant documents with you. 
3. While filing the income tax return, ensure filing it accurately with correct details. Mention the tax credit amount as well in the form 31270. 

FAQs of $10,000 Tax Credit in Canada