Home Buyer Tax Credit
The Government of Canada offers a non-refundable tax credit to help first-time home buyers with some of their closing costs. This Home Buyer Tax Credit (HBTC) will provide up to $750 in tax relief on the purchase of a first home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15 per cent in 2009) by $5,000. For 2009, the credit will be $750.
To qualify for the HBTC, an individual must purchase a qualifying home and neither the homebuyer or the homebuyerâ€™s spouse or common-law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.
For more information, go to the Canada Revenue Agency Web site and search for â€œFirst time home buyersâ€™ tax credit.â€