Take advantage of the Home Buyers' Plan (HBP): The HBP is a program that allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) tax-free to use towards the purchase of their first home. However, this amount must be paid back into the RRSP within 15 years.
Claim the First-Time Home Buyers' Tax Credit (HBTC): This is a non-refundable tax credit of up to $10,000 that can be claimed by first-time homebuyers to help offset the costs associated with purchasing a home. To be eligible, you must have purchased a qualifying home in the year, and you and your spouse cannot have owned a home in the previous four years.
Consider a joint purchase: If you're buying a home with a spouse or partner, you can both claim the HBTC and the HBP, which could result in significant tax savings.
Keep track of home-related expenses: Some home-related expenses, such as mortgage interest, property taxes, and home insurance, may be tax-deductible. Keep track of these expenses throughout the year and speak with a tax professional to determine what you can claim.
Consider energy-efficient upgrades: Making energy-efficient upgrades to your home, such as adding insulation or upgrading to a high-efficiency furnace, may qualify you for tax credits or rebates.
Remember to speak with a tax professional to determine what tax-saving strategies work best for your specific situation.
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