TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
Licensed by the Law Society of OntarioFlat fees published upfrontWe reply to messages within 1 business daySign in
Home/Articles/Real Estate
№ 22 Real Estate

Federal First-Time Home Buyers' Tax Credit: How to Claim It in Ontario

Learn who qualifies for the federal Home Buyers' Amount, where to claim it on your return, and how it fits with other first-time buyer help in Ontario.

Real Estate4 min readTSLBy the Treadstone Law Team · OntarioUpdated November 1, 2026
← All articles
Key takeaways
  • The federal Home Buyers' Amount lets you claim up to $10,000 for a qualifying home bought in 2025, and it is a non-refundable credit.
  • You generally must not have lived in a home owned by you or your spouse or common-law partner in the year of purchase or the four years before, with an exception for disability.
  • The credit is claimed on line 31270, and it is separate from Ontario's land transfer tax refund and other first-time buyer programs.

You have bought your first home in Ontario, or you are about to, and someone has mentioned a federal tax credit for first-time buyers. It is easy to confuse this credit with the many other first-time buyer programs, so it helps to know exactly what it is and what it is not.

This article explains the federal Home Buyers' Amount: who can claim it, the main conditions, the special cases, and where it goes on your return. It is general information, not advice on your own situation.

What the Home Buyers' Amount is

The Home Buyers' Amount is claimed on line 31270 of your federal return. It lets you claim up to $10,000 for the purchase of a qualifying home in 2025.

It is a non-refundable credit. In plain terms, it can reduce the income tax you owe, but it does not produce a cash refund on its own if you owe little or no tax. The $10,000 figure applies to 2025 purchases, so check the current figure for the year you bought.

Who can claim it

The general rule is that you must not have lived in another home owned by you or your spouse or common-law partner in the year of purchase or any of the four preceding years. The home must also meet these conditions:

Note that the test looks at where you lived in a home you or your partner owned. Owning a property you never lived in is a different question, and a lawyer or accountant can confirm how it applies to you.

Special cases: disability and couples

You do not have to be a first-time buyer if you are eligible for the disability tax credit, or if you buy the home for a related person who is eligible. In that case the home must be more accessible or better suited to that person's needs.

Couples should plan the claim together. The amount can be split only if both partners are eligible, and their combined claims cannot exceed the yearly maximum. One partner might be eligible while the other is not, so each person's history matters.

Other first-time buyer help in Ontario

The Home Buyers' Amount is only one piece. Each program has its own conditions, so do not assume that qualifying for one means you qualify for another.

ProgramWhat it offersKey condition
Ontario land transfer tax refundRefund up to a maximum of $4,000Buyer is at least 18, has never owned a home anywhere in the world, and lives in the home within nine months
First Home Savings Account (FHSA)$8,000 a year of room and a $40,000 lifetime limit; qualifying withdrawals are not taxableAge 18 or older, resident of Canada, first-time buyer
Home Buyers' Plan (HBP)RRSP withdrawal limit of $60,000, repaid over up to 15 yearsYou can also make a qualifying FHSA withdrawal for the same home if you meet all conditions at the time of each withdrawal

A spouse's past home ownership can disqualify a buyer from the Ontario refund, and buyers under agreements signed after November 14, 2016 must be Canadian citizens or permanent residents.

What to do next

Before you file, gather what shows your eligibility and the purchase. A short checklist helps:

If your history is complicated, for example you owned a property you rarely lived in, or you bought with a relative, speak with a lawyer or accountant before filing.

Frequently asked questions

Is the Home Buyers' Amount a refund?

No. It is a non-refundable credit, so it can reduce the tax you owe but is not paid out as a refund by itself. The claim goes on line 31270.

Can my spouse and I both claim it?

You can split the amount only if both of you are eligible, and your combined claims cannot exceed the yearly maximum. The home may be registered in either partner's name for this credit.

Do I need to be a first-time buyer?

Generally you must not have lived in another home owned by you or your spouse or common-law partner in the year of purchase or the four preceding years. An exception applies if you are eligible for the disability tax credit, or buy for a related person who is.

Does this credit replace the Ontario land transfer tax refund?

No, they are separate. Ontario's refund is up to $4,000 and has its own conditions, including living in the home within nine months of the transfer. You may be able to claim both if you meet each program's rules.

Sources

Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

This is a real estate question

Start a file online — flat, published fees, reviewed by a licensed lawyer before a dollar is owed.

ContactStart a File →