How much is the first-time home buyer tax credit?

The First-Time Home Buyer Tax Credit (HBTC) is $10,000, resulting in a federal tax credit of $1,500 (15% of $10,000). This is a non-refundable credit that reduces taxes owed.

Who qualifies for the first-time home buyer tax credit?

You qualify if you or your spouse haven''t owned a home you lived in during the year of purchase or the four preceding years. The home must be registered in your name and in Canada.

Can you claim the home buyers tax credit if you previously owned a home?

Yes, if you haven't owned a home that you lived in for the 4 years prior to purchase. The rule applies to homes you lived in, not investment properties.

Can I combine the HBTC with the FHSA and RRSP Home Buyers Plan?

Yes. You can claim all three simultaneously: the $1,500 HBTC credit, up to $40,000 from a tax-deductible FHSA, and up to $60,000 from the RRSP Home Buyers' Plan (both spouses). Together, a couple can access $1,500 in credits plus $200,000 in tax-advantaged down payment funds. There is no rule preventing you from stacking these programs.

What if I forgot to claim the HBTC when I filed my taxes?

You can request an adjustment (T1-ADJ) through CRA My Account or by mail within 10 years of the original filing. The $1,500 credit will be applied retroactively. Many first-time buyers miss this credit, so it is worth checking past returns.

First-Time Home Buyer Tax Credit Canada 2026: $1,500 Refund (HBTC Guide)

First-Time Home Buyer Tax Credit (HBTC)

Feature	Details
Credit amount	$10,000
Tax value	$1,500 (15% of $10,000)
Type	Non-refundable
Frequency	Once per qualifying purchase
Claim deadline	Year of purchase

Who Qualifies

Basic Requirements

Requirement	Details
Residence history	Didn’t live in a home you owned for 4+ years
Location	Home must be in Canada
Registration	Home in your name (or spouse/partner)
Intent	Intend to live in home as principal residence
Purchase timing	Must acquire home in the tax year

The 4-Year Rule Explained

Year	Owned Home?	Lived In It?	Qualifies?
2025 (purchase year)	No	—	✅
2024	No	—	✅
2023	No	—	✅
2022	No	—	✅
2021	No	—	✅

You qualify if you answer “No” to both for all 5 years.

Special Situations

Situation	Qualifies?
Owned rental property (never lived in)	✅ Yes
Owned condo, lived there 3 years ago	❌ No
Spouse owned home before marriage (4+ years ago)	✅ Yes
Owned home outside Canada	✅ Yes
Inherited home but didn’t live in it	✅ Yes
First-time buyers	✅ Yes

Persons with Disabilities Exception

Who Can Claim Regardless of Past Ownership

Situation	Qualifies?
Qualifying disability (eligible for DTC)	✅
Buying for relative with disability	✅
Home more accessible for disability	✅

Note: The disability exception overrides the 4-year rule.

Eligible Properties

What Qualifies

Property Type	Eligible
Detached house	✅
Semi-detached house	✅
Townhouse	✅
Condo	✅
Apartment in duplex	✅
Mobile home	✅
Floating home	✅

What Doesn’t Qualify

Property Type	Eligible
Home outside Canada	❌
Purely investment property	❌
Commercial property	❌
Timeshare	❌

How to Claim

Steps

Step	Action
1	Confirm eligibility (4-year rule)
2	Complete your tax return for purchase year
3	Enter $10,000 on Line 31270 of tax return
4	Get Schedule 1 if claiming multiple credits

Documentation Needed

Document	Purpose
Purchase agreement	Proves acquisition date
Title/deed	Proves ownership
Moving records	Proves intent to occupy

You don’t submit documents — keep them if CRA asks.

Splitting the Credit

Between Spouses/Partners

Splitting Option	How
One person claims all	$10,000 → $1,500 credit
Split equally	$5,000 each → $750 each
Any split	Total must equal $10,000

When to Split

Situation	Best Approach
Both have income	May not matter
One earns more	Give to higher earner
One has no tax owing	Give to other person

Note: Non-refundable credit only reduces tax to $0, doesn’t create refund.

Provincial First-Time Buyer Credits

Some provinces offer additional credits:

Province	Credit	Value
Ontario	LOHTC	Up to $4,000 refund
BC	First Time Home Buyers’ Program	PTT exemption
Toronto	Municipal LTT rebate	Up to $4,475
Other provinces	Vary	Check locally

Ontario Land Transfer Tax Rebate

Feature	Details
Rebate amount	Up to $4,000
Qualifies	First-time buyers (18+)
Applies to	New or resale homes
Maximum price for full rebate	$368,000
Partial rebate	$368,000-$400,000

Toronto Municipal LTT Rebate

Feature	Details
Rebate amount	Up to $4,475
Qualifies	First-time buyers
Stacks with	Ontario rebate
Combined savings	Up to $8,475

HBTC vs Other Programs

Program	What It Provides	Limits
HBTC	$1,500 tax credit	Once per eligible purchase
FHSA	Tax-deferred savings	$40,000 lifetime
HBP	RRSP withdrawal	$60,000 per person
Ontario LTT rebate	Up to $4,000	Ontario only

Using All Programs

Program	Benefit	Combined
HBTC	$1,500	✅
FHSA withdrawal	Tax-free growth	✅
HBP withdrawal	$60,000 interest-free	✅
Provincial rebates	Varies	✅

All can be used together on the same purchase.

Common Questions

What If I Buy With My Partner?

Scenario	Approach
Both first-time buyers	$10,000 total (split or allocate)
One first-time, one not	First-timer claims full $10,000
Neither qualify	No credit available

What Is the Acquisition Date?

Property Type	Acquisition Date
Existing home	Closing date
New build	Later of: closing or substantial completion
Pre-construction	Registration/closing

Can I Claim in Future Years?

Situation	Can Claim?
Forgot to claim	Yes — request adjustment (T1-ADJ)
Time limit	Within 10 years
How	File T1 adjustment request