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Oct 23

The first time home buyers rebate explained

Purchasing your first home is probably the biggest investment you made until now, so saving even a small part of the money required for a home is good news. The Canadian program meant to help people with the purchase of their first home called First-Time Home Buyers’ Tax Credit or HBTC in short will allow you to get some money back after making the biggest investment in your life. The program introduced by the government through the Economic Action Plan aims to assist Canadians with the costs associated with buying a house. The first time home buyers rebate will help save legal fees, land transfer taxes and disbursements. All these costs are a real burden for someone that needs to save money for a down payment, so the initiative of the government to offer up to $750 in federal tax relief and $5,000 non-refundable HBTC is welcomed by home buyers.

Who is eligible for the HBTC rebate?

You are considered a first time home buyer and can apply for a HBTC rebate, if you, your spouse or common-law partner have not owned and lived in another house for at least four years. Keep in mind that special rules apply for individuals eligible for the disability tax credit, when the HBCT can be claimed even though the requirements mentioned above are not met.  Two and more eligible individuals can purchase a home jointly and claim the first time home buyers rebate and the sum will be split equally between them. The benefits of the HBTC are clear and first-time home buyers should not miss the chance of saving money especially after making such a large investment and struggling with the down payment.

How do qualifying homeowners get the refund?

If you qualify for a rebate, you can immediately claim the money after registering. You can register for a rebate in two different ways: electronically and on paper. You can register electronically by completing the required statements in the tab dedicated to the land transfer tax. You can also file an affidavit at the land registry office in your city of residence. Keep in mind that the electronic registration is not always available. If you have already registered and paid the taxes, you can ask for a refund by submitting a series of documents. This process is more difficult and it will take longer to receive your money.

Using professional services

If you need to apply for a refund, you should probably resort to professional help. Registering for a rebate is a challenging thing, because you will have to gather many documents and go through multiple steps, which will take a lot of time and effort, not to mention that the smallest mistakes can result in you not receiving your money. Professional service providers have the necessary experience to ensure that your application is flawless, not to mention that they will save you precious time. What is more, they usually will not demand pay until you have your money back.

 

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