Line 31270 – Home buyers' amount

You can claim up to $10,000 for the purchase of a qualifying home in 2022 if both of the following apply:

• You (or your spouse or common-law partner) acquired a qualifying home

• You did not live in another home that you (or your spouse or common-law partner) owned in the year of acquisition or in any of the four preceding years (first-time home buyer)

Qualifying home

A qualifying home must be registered in your 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.

The following are considered qualifying homes:

• single-family houses

• semi-detached houses

• townhouses

• mobile homes

• condominium units

• apartments in duplexes, triplexes, fourplexes, or apartment buildings

Note

A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only gives you the right to tenancy in the housing unit does not qualify.

You must intend that you, or a related person with a disability, will occupy the home as a principal place of residence no later than one year after it is acquired.

Persons with disabilities

You do not have to be a first-time home buyer if either of the following applies to you:

• You are eligible for the disability tax credit

• You acquired the home for the benefit of a related person who is eligible for the disability tax credit

Note

The purchase must be made to allow the person with the disability to live in a home that is more accessible or better suited to their needs. For the purposes of the home buyers' amount, a person with a disability is a person who is eligible for the disability tax credit for the year that the home is acquired.

You must intend that you, or a related person with a disability, will occupy the home as a principal place of residence no later than one year after it is acquired.

Completing your tax return

Enter $10,000 on line 31270 of your return if you are not splitting the amount with your spouse or common-law partner.

You and your spouse or common-law partner can split the claim but the combined total cannot be more than $10,000.

When more than one person is entitled to the amount (for example when two people jointly buy a home), the total of all amounts claimed cannot be more than $10,000.

CRA Publications

First Home Savings Account

The first home savings account (FSHA) is a qualifying arrangement between a holder and an issuer that is registered with the Canada Revenue Agency (CRA). Its main purpose is to give prospective first-time home buyers the ability to save for a down payment on a tax-free basis.

Some key features of the FHSA include:

• holders can contribute or transfer in from their registered retirement savings plan (RRSP) up to $8,000 per year

• the lifetime contribution and transfer in limit is $40,000

• holders can carry forward unused portions of their FHSA participation room  up to a maximum of $8,000

• contributions are tax-deductible

• withdrawals used to purchase a qualifying home  are non-taxable

• holders can have more than one FHSA

  • subject to the FHSA participation room and lifetime FHSA limits

  • the maximum participation period starts when they open their first FHSA

Who can offer FHSAs

A financial institution (known as an issuer) must receive approval from the Canada Revenue Agency (CRA) before it can offer first home savings accounts (FHSAs) to their clients.

An issuer is:

• a company licensed to carry on an annuities business in Canada (such as an insurance company)

• a Canadian trust company

• a depositary, which is:

  • a member, or a person eligible to become a member, of the Canadian Payments Association

  • a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of the Canadian Payments Act

The issuer is responsible for administering FHSAs, although they may transfer some administrative duties to another financial institution (known as an agent). To do so, the issuer must send the CRA a letter that authorizes that agent to administer FHSAs on their behalf.

Create an FHSA application package

Before an issuer can offer FHSAs to the public, they must submit their FHSA application package to the Registered Plans Directorate for approval. The Directorate will review the package to make sure that it is complete and complies with CRA and Income Tax Act requirements.

An application package includes:

• Form RC226, Application for an FHSA Identification Number

• FHSA specimen plan

• Holder application form

For more information, read CRA publication from this link FHSA application package - Canada.ca