This is how the First Time Homebuyer Tax Credit works:
The initial costs associated with purchasing a home can be a particular burden for first-time homebuyers especially when added to the money required for a down payment.
To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a First Time Homebuyers Tax Credit (FTHB) in 2009.
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009 (and still in 2014), the credit will be $750.
For more information on this great plan, please click on the following link:
http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
