How much is the Home Buyers' Amount worth?

It is calculated on a $10,000 amount and, as a non-refundable federal credit at the lowest tax rate, is worth up to about $1,500 in actual tax savings for the year you buy.

Can my partner and I both claim it?

You can split the amount between spouses or partners, but the combined claim cannot exceed the $10,000 limit, so the total tax benefit is capped regardless of how you divide it.

Is the credit refundable?

No. It is non-refundable, meaning it can reduce the tax you owe but will not produce a refund beyond your tax payable for the year.

Mortgage Glossary

What is Home Buyers' Amount?

The Home Buyers' Amount is a federal non-refundable tax credit that eligible first-time home buyers can claim on their income tax return. It is calculated on a $10,000 amount and is worth up to about $1,500 in tax savings. The credit helps offset some of the costs of buying a first home.

Find my best mortgage Back to glossary

Quick answer

Also known as: home buyers tax credit, first-time home buyers' tax credit, HBTC

Key points

A non-refundable federal tax credit for eligible first-time home buyers.
Claimed on a $10,000 amount, worth up to about $1,500 in tax savings.
Helps offset closing costs like legal fees and land transfer tax.
Can generally be split between spouses or partners up to the limit.
Being non-refundable, it reduces tax owed but does not create an extra refund.
Certain persons with disabilities may qualify even if not first-time buyers.

Home Buyers' Amount explained

The Home Buyers' Amount is a non-refundable federal tax credit available to eligible first-time home buyers who acquire a qualifying home. You claim a $10,000 amount on your tax return for the year you buy, and because it is a non-refundable credit applied at the lowest federal tax rate, it translates into roughly $1,500 in actual tax savings.

Being non-refundable, the credit can reduce the tax you owe but does not create a refund beyond your tax payable. The amount can generally be split between spouses or partners as long as the combined claim does not exceed the limit. Some buyers who are persons with disabilities may qualify even if they are not first-time buyers, under specific conditions.

What a Home Buyers' Amount is for

The credit exists to give first-time buyers a modest financial break that helps offset closing costs such as legal fees, inspections, and land transfer tax. While it does not change your mortgage approval, it puts money back in your pocket at tax time, easing the overall cost of getting into your first home.

How it can help you

Knowing about the credit ensures you actually claim it on your tax return, since it is easy to overlook in the busy first year of ownership. Roughly $1,500 in tax savings is a welcome offset to your closing costs. Lenderoo shops 40+ lenders for free, so while the credit helps at tax time, you can also keep your borrowing costs down by comparing mortgages.

When it comes up

The credit comes into play at tax time in the year you buy your first home. After closing, you note the purchase and claim the $10,000 Home Buyers' Amount on your return, reducing your federal tax by roughly $1,500. Couples buying together can split the amount between them as long as the total claim stays within the limit.

Example: Claiming the credit

Suppose you buy your first home this year. On your tax return, you claim the Home Buyers' Amount on a $10,000 amount.

Because it is a non-refundable credit applied at the lowest federal tax rate, it works out to roughly $1,500 in tax savings, reducing the federal tax you owe. If you and a partner buy together, you can split the amount between you, provided your combined claim does not exceed the $10,000 limit. It will not generate a refund beyond your tax payable.