The First-Time Home Buyers' Tax Credit

Last reviewed October 30, 2026

This one is easy to miss because it doesn't happen at closing. You claim it on your income tax return for the year you buy. It's not huge, but it's real money back for almost every first-time buyer, and it takes a minute to claim.

Key facts

Credit amount: $10,000
Tax value: Up to $1,500 (15% of $10,000)
Type: Non-refundable federal tax credit
Claimed on: Your income tax return for the year of purchase
Couples: Can split it, but the combined claim can't exceed $10,000

Source: Canada Revenue Agency, Home buyers' amount (line 31270). Confirm current rules at canada.ca.

Who qualifies

You can generally claim the home buyers' amount if:

You (or your spouse or common-law partner) acquired a qualifying home in Canada, registered in your name or your spouse's name.
You intend to occupy it as your principal residence no later than one year after buying it.
You're a first-time home buyer: you didn't live 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 first-time buyer condition doesn't apply if you're eligible for the disability tax credit, or if you're buying for a related person who is, to help them live in a more accessible or suitable home.

What counts as a qualifying home

Most types of housing qualify: detached and semi-detached houses, townhouses, condominium units, mobile homes and apartments in duplexes, triplexes or apartment buildings. A share in a co-operative housing corporation that entitles you to own and occupy a unit can also qualify.

How "non-refundable" works

A non-refundable credit reduces the federal tax you owe. It won't create a refund on its own if you don't owe federal tax. For most working buyers that's not an issue, and the full $1,500 reduces their tax bill, which typically shows up as a bigger refund or a smaller balance owing.

Couples: splitting the credit

If you buy with a spouse or common-law partner, or with someone else who also qualifies, you can split the $10,000 between you however you like, as long as the total claimed doesn't exceed $10,000. It usually makes sense for the person with enough federal tax payable to absorb it to claim it.

How to claim

On your return for the year you bought the home, claim the home buyers' amount (line 31270 of the federal return).
Keep your purchase documents, such as the agreement of purchase and sale and the statement of adjustments, in case the CRA asks.
If you forgot to claim it, you can usually request an adjustment to a previous year's return.

It stacks. The tax credit is separate from the FHSA, the RRSP Home Buyers' Plan and Ontario's land transfer tax refund. Most first-time buyers who qualify for those can claim this too.

How it fits your budget

Because you get the credit after you've bought, through your tax return, don't count it toward your down payment or closing costs. Think of it as a bonus toward first-year homeowner costs: a lawn mower, window coverings, or a cushion for the first property tax bill.

Other tax points for new homeowners

Moving expenses: if you moved at least 40 km closer to a new job or school, you may be able to deduct eligible moving expenses.
Home accessibility tax credit: for eligible renovations that make a home more accessible for a senior or a person with a disability.
Principal residence exemption: when you eventually sell, gains on your principal residence are generally tax-free. You must report the sale on your return.

Ask a tax professional how these apply to you.

A quick example

Hypothetically, Sam and Priya buy their first home in London in March. When they file their taxes the following spring, Sam claims $6,000 of the home buyers' amount and Priya claims $4,000, because both have enough federal tax payable. Together, the credit reduces their combined federal tax by $1,500. Neither needs to submit receipts with their return, but they keep their closing documents on file.