As a homeowner you may be eligible for the following benefits and or tax credits such as the Home buyers’ amount, the Home Accessibility Tax Credit (HATC) and the Principle Residence Exemption. Learn more by reading below.
On this page you’ll find
Home buyers’ amount
You or your spouse can claim the $10,000 Home buyers’ amount. The maximum credit is $1,500 ($10,000 x 15%, the lowest personal tax rate).
To qualify:
- You or your spouse must have acquired a qualifying home, and
- You can’t have lived in another home owned by you or your spouse in the year you buy your first home – or in any of the 4 previous years.
Home Accessibility Tax Credit (HATC)
The HATC is a non-refundable tax credit for eligible home renovation or alteration expenses that allow a qualifying individual to gain access to, or to be mobile or functional within the eligible dwelling or reduce the risk of harm to the qualifying individual within the dwelling or in gaining access to the dwelling. Non-refundable tax credits do not add to your refund, but they reduce the amount of tax you owe, at tax time.
You may claim up to $20,000 for the HATC, leading to a maximum credit of $3,000 ($20,000 x 15%, the lowest personal tax rate). Learn more about the HATC.
Principal Residence Exemption
You won’t pay tax on any money you make when you sell your principal residence. You don’t have to report the sale on your tax return. If prices go down and you lose money selling your home, you can’t claim the loss on your tax return. Learn more about the Principal Residence Exemption.
Home Buyers’ Plan (HBP)
As a first-time home buyer, You can borrow up to $60,000 from your RRSP under the HBP to buy or build a qualifying home for yourself, or someone with a disability who is related to you. You won’t pay any tax on the money as long as you pay it back within 15 years.
Summary
As a homeowner or future homeowner, you should know:
- If you’re a first-time home buyer, you may qualify for the Home Buyers’ Plan from the Canada Revenue Agency.
- You can claim the $10,000 Home Buyers’ Amount if you have a qualifying home and have not lived in another home owned by you or your spouse during the year you bought your first home or in the previous 4 years.
- You may claim the Home Accessibility Tax Credit if you renovated a home to make it more accessible or to improve mobility and are 65 years or older or you’re eligible for the Disability Tax Credit.
- You do not pay tax on the money made from selling your principal residence and don’t have to report the sale on your tax return.
