As mortgage brokers, we are often asked about the tax benefits available to first-time homebuyers. One of the most significant benefits is the first-time homebuyer's tax credit offered by the governments of Quebec and Canada.

This tax credit is designed to assist first-time buyers in acquiring their first property by reducing the amount of tax they have to pay. It is crucial to note that this tax credit is only available to individuals who purchase their first property and meet specific eligibility criteria.

To take advantage of this tax credit, you must apply for it in your tax return. It is essential not to forget to do this, as you could miss out on this significant tax benefit.

Although we are not tax specialists, we can provide you with general information about the tax benefits available to first-time buyers. For more detailed advice, we recommend consulting a tax expert.

In Quebec, the homebuyer's tax credit is a fiscal measure you could benefit from if you resided in Quebec at the end of the targeted year and if you or your spouse acquired a qualified home for the first time or to make it the principal residence of a disabled person. The eligible home must be located in Quebec and can be a single-family, semi-detached, townhouse, manufactured home, mobile home, condominium apartment, or a share of a housing cooperative that grants the right to own a home registered in the land registry. The maximum credit amount is $1,400, and it is possible to share this credit if several people are entitled to the credit for the same home.

To request this credit, you must fill out the Homebuyer's Tax Credit form (TP-752.HA) and attach it to your tax return. Additional information is available on the Revenu Québec website.

On the federal side, Canada has increased since 2022 the amount of the First-Time Home Buyer Tax Credit (HBTC) to $10,000., which would provide a tax credit of up to $1,500 to eligible homebuyers.

For more information on the HBTC and the proposed change, you can consult  The Canada Revenue Agency

These tax credits represent substantial assistance for first-time homebuyers, reducing financial barriers to home ownership. Remember to consult a tax expert to maximize these benefits and to submit your application during your tax filing.

In summary, the first-time homebuyer's tax credit is a significant tax advantage that can help you acquire your first property. 

For more details on eligibility criteria and the application process, we recommend consulting this informative article Canada’s First-Time Home Buyers’ Tax Credit.

Be sure to apply for it in your tax return, and do not hesitate to contact us for more information.