Buying a home for the first time?

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Buying a home for the first time? First time home-buyer’s tax credit is for you!

Numerous articles about buying a property in Toronto and the GTA start from “Still renting?” And there is a reason for that. A big one. Let’s go figures.

Greater Toronto Area REALTORS® reported:

  • An 18% year-over-year increase in condo apartment rental transactions in Q4 2013, with a total of 4,305 condo apartments leased compared to 3,644 during the last three months of 2012.
  • The number of condos listed for rent was up by 31%
    • About 95% condominium rental transactions involved one-bedroom and two-bedroom apartments.
    • The average one-bedroom rent was $1,600 and two-bedroom – $2,165.

Really, there is no reason to rent if you can buy a home. If you are buying a home for the first time, more likely you will be eligible for the first-time home buyers’ tax credit.

First-Time Home Buyers’ Tax Credit

You must intend to occupy the home as a principal place of residence no later than one year after it is acquired.

First-time home buyers can claim a non-refundable tax credit of $750 for the purchase of a qualifying home. In you income tax declaration it is Line 369 – Home buyers’ amount.

You can claim an amount of $5,000 for the purchase of a qualifying home made in 2013, if both of the following apply:

  • you or your spouse or common-law partner acquired a qualifying home; and
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

A qualifying home must be registered in your and/or your spouse’s or common-law partner’s name in accordance with the applicable land registration system, and must be located in Canada. It includes existing homes and homes under construction.

Persons with disabilities do not have to be a first-time home buyer if:

  • you are eligible for the disability amount; or
  • you acquired the home for the benefit of a related person who is eligible for the disability amount.
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