Think “first-time home buyer” means you’ve never owned a home? Not necessarily.

For many federal programs, you may qualify again if you haven’t lived in a home you owned during the current year or the previous four calendar years. That means past homeownership doesn’t automatically disqualify you.

Important Points

•You can regain first-time buyer status. If you meet the four-year rule, you may qualify even if you owned a home before.

•Your partner’s history matters. A spouse or common-law partner’s recent homeownership can affect your eligibility.

•Homes outside Canada count. Previous ownership abroad may also affect your status.

•Provincial rules can differ. You may qualify for federal programs but not every provincial rebate.

•You can combine incentives. Eligible buyers may be able to use both the FHSA and Home Buyers’ Plan for the same purchase.

How the Four-Year Rule Works

For many federal programs, the CRA generally considers you a first-time home buyer if you did not live in a home you owned or jointly owned during the current calendar year or the previous four calendar years.

Your eligibility can also be affected by your spouse or common-law partner’s ownership history, including a qualifying home outside Canada.

First-Time Home Buyer Programs

If you qualify, several programs can help make buying a home more affordable:

First Home Savings Account (FHSA): Contribute up to $8,000 per year, to a lifetime maximum of $40,000, with tax-deductible contributions and tax-free withdrawals for a qualifying home.

Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP to buy or build a home, subject to repayment requirements.

Home Buyers’ Amount: Eligible buyers can claim up to $10,000 when filing their federal income tax return, creating a non-refundable tax credit.

GST Rebate for New Homes: Eligible first-time buyers purchasing qualifying new homes may be eligible for a federal GST rebate of up to $50,000, subject to purchase price and other requirements.

Can You Combine the FHSA and HBP?

Yes. If you’re eligible, you can use both an FHSA withdrawal and an HBP withdrawal for the same home, potentially giving your down payment a significant boost.

What About Provincial Rebates?

Federal and provincial definitions aren’t always the same. Some provincial land transfer tax programs have stricter requirements, including rules that may exclude anyone who has owned a home before.

Bottom Line: Owning a home in the past doesn’t necessarily mean you’ve lost your first-time buyer status forever. Before ruling yourself out, check the specific requirements for each program you’re considering.

Feel free to give me a call and I would be happy to help you understand which incentives may apply to your situation and guide you through the buying process.