How The Home Buyer Tax Credit Gets Calculated

The HBTC gets calculated by multiplying the lowest personal income tax rate for the current year by $5,000. For 2009, the credit will be $750.

Who Is Eligible For The Home Buyer Tax Credit

The following criterial must be met to qualify for HBTC:

• You or your spouse (or common-law partner) purchase a home (must be a qualified home); and
• you have both not owned a property in the year of acquisition or in any of the four preceding years.

What Constitutes A "Qualified Home" For the Home Buyer Tax Credit

A qualifying home is a housing unit located in Canada acquired after January 27, 2009. This includes existing homes and those being constructed. A qualifying home may also include a share in a co-operative housing corporation that allows you to possess, and also gives you an interest in equity. A housing in unit in Canada would also be considered qualifiable. 

If you are only occupying the property as a tenant, this does not qualify. You must intend to occupy the property or you must intend that the person who is related to you occupies the home as their principle residence within one year after it is purchased.