Buying Your First Home in 2026? Tax Credits & Savings You Should Know

Blog

Mar 31

Tax season is here… let’s help you make the most of it! 💰📊

Every year when tax season rolls around, we hear the same questions from our clients:
What can I claim? What am I missing? Are there any credits for first-time buyers?

If you’re thinking about buying your first home, or you bought one recently, there are a few tax tips that can put real money back in your pocket. 🏡 We’ve broken everything down in simple terms so you can head into tax time feeling confident and informed. Here are some of the best tips for first-time home buyers in Winnipeg, directly from realtors.

We’re not accountants, but we are here to help you understand what’s available and point you in the right direction. Here’s what you should know for 2026.

Home Buyers’ Tax Credit (HBTC) 🧾

In 2026, first-time homebuyers in Canada can claim a non-refundable $10,000 Home Buyers’ Amount, which gives you a $1,500 reduction on your tax bill (15% of $10,000).

Key details:

Maximum credit: 15% of $10,000 = $1,500 💵
Eligibility: You and your spouse/partner must not have owned and lived in a home in the year of purchase or the previous four years
Qualifying homes: Detached, semi-detached, townhomes, condos and mobile homes in Canada 🏠
Occupancy: You must intend to live in the home as your principal residence within one year

How to claim:
Use Line 31270 on your tax return. Couples can split the amount, but the combined total cannot exceed $10,000.

Good to know:
If you’re purchasing for yourself or a related person with a disability, you may still qualify even if you’re not technically a first-time buyer.

Home Buyers’ Plan (HBP) 💼

The HBP allows you to withdraw up to $60,000 tax-free from your RRSP to put toward your first home.

Repayment period: 15 years ⏳
Must qualify as a first-time buyer (with some exceptions for disability-related situations)
Withdrawals remain tax-free as long as repayment rules are followed

First Home Savings Account (FHSA) 📈

This is one of the most powerful tools available to future buyers.

Contribute up to $8,000 per year, with a lifetime maximum of $40,000
Contributions are tax-deductible (like an RRSP)
Withdrawals for your first home are tax-free (like a TFSA)

You must be a Canadian resident and a first-time homebuyer to qualify.

GST Rebate for First-Time Buyers (New Builds) 🏗️

If you’re building or buying a brand new home, this is a big one to know about.

As of March 2026, eligible first-time homebuyers in Canada may be able to claim back the full GST on a new build, which can mean up to $50,000 in savings.

Key details:

Eligibility:
You must be a first-time homebuyer (you haven’t owned and lived in a home in the past 4 years) and the home must be your primary residence.

Maximum savings:
Up to $50,000 💰 (which essentially covers the 5% GST on a $1M home)

Purchase price thresholds:
• Homes up to $1,000,000 → 100% of GST is rebated
• $1,000,000 to $1,500,000 → rebate is reduced on a sliding scale
• Over $1,500,000 → no rebate available

Timeline:
• Purchase agreements must be signed after March 20, 2025 and before 2031
• Construction must be completed before 2036

Owner-built homes:
If you’re building your own home, you may also qualify as long as construction began after March 20, 2025.

Not a First-Time Buyer? You May Still Qualify 🧾

Even if you don’t meet the first-time buyer criteria, there is still a standard GST/HST new housing rebate available.

You may be eligible to receive:

• 36% of the GST paid
• Up to a maximum of $6,300
• Typically applies to homes valued at $350,000 or less

Good to know:
This rebate isn’t always automatic. In some cases it’s applied at closing, and in others you’ll need to apply through the CRA after possession, so it’s worth confirming with your lawyer or builder.

Moving for Work: What You May Be Able to Claim 🚚

If your move or home purchase was tied to a new job, there may be additional savings available.

If you moved to be closer to work (or school, in some cases), you may be able to deduct certain moving expenses, whether you bought or rented your new home.

The key rule (and this is the important part):
Your new home must be at least 40 km closer to your new workplace than your old home was. 📍

In simple terms, the move needs to significantly shorten your commute.

You also need to:

Move for work (as an employee or self-employed) or to run a business 📄
Earn income at the new location

What you can claim may include:

Moving company, packing, storage, and insurance 📦
Travel costs (vehicle, meals, accommodations) 🚗
Up to 15 days of temporary living expenses 🏨
Lease cancellation fees
Costs to sell your old home (including realtor commissions and legal fees)
Legal fees and land transfer taxes on your new home (if you sold your previous one)
Limited costs to maintain your old home while vacant

What’s not eligible:

House-hunting trips
Cleaning or repairs to prepare your home for sale
Losses on the sale of your home

How to claim:

Complete Form T1-M (Moving Expenses Deduction)
Report on Line 21900 of your tax return
Keep all receipts in case the CRA requests them 🧾

Good to know:

Moving expenses are deducted against income earned at your new location, not as a general lump-sum refund
If your expenses are higher than your income, you can carry them forward to future years
If your employer reimbursed you for any costs, you can’t claim those same expenses again

We’re here to help ❤️

Tax season can feel overwhelming, especially when you’re navigating homeownership for the first time. But knowing what’s available can make a meaningful difference.

If you’d like help understanding which programs apply to you, or you’re thinking about buying your first home, we’re always here to chat.

We’re happy to walk you through the process, connect you with trusted mortgage and tax professionals, and make the next steps feel simple.

We want to help you love where you live. 🏡✨