The Best No Foreign Transaction Fee Credit Cards Canada 2021
Anyone who travels to or shops in the US or overseas frequently or for long periods of time would benefit from a no foreign transaction fee credit car...
Loans Canada: The Country's Best Loan Comparison Platform
It can be a struggle trying to get a foothold in the housing market. Purchasing a home is very expensive, and not just due to the down payment you must acquire and present to the lender before they issue you a mortgage. Numerous other expenses accompany a home purchase, such as legal fees, land transfer taxes, inspection fees, mortgage insurance, and moving costs. All these extra items can quickly add up, making the process that much more daunting.
Luckily, you can obtain some financial aid during tax season to help pay for some of these extra costs using the First-Time Home Buyers’ Tax Credit.
The First-Time Home Buyers’ Tax Credit is a $5,000 non-refundable tax credit that you can claim on your tax return. The credit allows you to receive a tax rebate of $750, which can help offset some of the costs associated with your home purchase. Introduced in 2019, the First-Time Home Buyers’ Tax Credit is available to all Canadians who qualify.
Check out these tax credits for parents.
Since the First-Time Home Buyers’ Tax Credit was created to provide financial relief to those buying their first home, you must be deemed a first-time homebuyer to utilize it. There are two criteria you must meet:
A special exception applies if you’re an individual with a disability who claims the disability tax credit on their tax return: you qualify for the First-Time Home Buyers’ Tax Credit even if you’ve previously owned a home. To be eligible under this exemption, you must meet the following criteria:
Learn more about how to qualify for the disability tax credit.
Types of Homes Eligible For The First Time Home Buyers’ Credit
Whether they’re existing properties or new constructions, most types of homes satisfy the eligibility requirement for the tax credit. These include:
In addition, you must have moved into your home no later than one year after making the purchase, and you’ve designated the home as your primary residence. The home also must be registered in your name or your partner’s name.
Thinking of purchasing a house outside of Canada? Learn how to get a mortgage abroad.
Claiming the First-Time Home Buyer’s Tax Credit is a simple process. When preparing your tax return, enter the amount of $5,000 on line 31270. The tax credit is calculated by multiplying the $5,000 amount by 15%, which translates to a reduction in your taxes of $750. You have the option to divide the tax credit between your return and your partner’s return, but the total amount claimed can’t exceed $5,000.
While there are many programs available for first-time homebuyers that can ease the financial burden associated with a home purchase, the First-Time Home Buyers’ Tax Credit is one of the simplest to understand and qualify for. As long as you meet the criteria, all you have to do is fill out one extra line on your tax return to get a hold of some easy money.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.
Anyone who travels to or shops in the US or overseas frequently or for long periods of time would benefit from a no foreign transaction fee credit car...
goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss.