Is there a federal tax credit for first-time home buyers in Ontario?
Yes. The First-Time Home Buyers' Tax Credit (HBTC) is a federal non-refundable credit for qualifying first-time buyers who purchase a qualifying home in Canada. Ontario residents are eligible for the federal HBTC, and Ontario also has its own First-Time Homebuyers Land Transfer Tax Refund — but these are separate programs.
The HBTC is claimed on your federal T1 return in the year of purchase. The credit is calculated on a set amount at the lowest federal tax rate. You qualify as a "first-time" buyer if neither you nor your spouse or common-law partner owned and lived in another home in the previous four calendar years. Buyers who qualify for the DTC can claim the HBTC even if they are not first-time buyers, provided the home is acquired to allow the person with the disability to live in a more accessible home.
The HBTC applies to homes that are acquired to be a principal place of residence: houses, condos, townhomes, mobile homes, and shares in a co-operative housing corporation all qualify. You do not attach documentation when filing — but keep your purchase documents in case CRA asks later.
Key takeaways
- The federal HBTC gives a non-refundable credit on a set eligible amount
- You must not have owned a home as a principal residence in the prior four years
- DTC-eligible individuals can claim the HBTC regardless of prior ownership
- Ontario's land transfer tax refund is a separate provincial program — both can be claimed