Doing Your Taxes? Tax Credits for Homebuyers

Tax season is in full-swing right now, and if you’re still getting your financial ducks in a row, you should know there are several tax deductions and credits that homeowners can take advantage of.

First-time homebuyer’s credit
If you’ve recently purchased your first home, you can claim a non-refundable tax credit of up to $750. This is a new tax credit, based on a percentage of $5,000.

New housing rebate
If you purchased a new home as your residence (and it’s less than $450,000) you may be able to claim the GST New Housing Rebate.

Homebuyer’s plan
This plan allows you to withdraw up to $25,000 from your RRSP in order to help with the purchase or construction of a home.

Working from home
If you work from home, you can deduct a number of expenses from your taxes. Examples of these would be: heating, home insurance, electricity and cleaning supplies. It’s best to consult a tax professional if you are working from home, to best ensure you get the biggest refund.

Rental deductions
If you are renting out a property you own, you can deduct expenses such as advertising, cleaning, insurance and improvements to the property. Again, best to consult a tax professional if you’re in this situation.

For more information on tax refunds and deductions for homeowners, check out the Canada Revenue Agency (CRA) website here.