Disability First Home Buyers Tax Credit Guide - Canada

Author: Ian C. Langtree - Writer/Editor for Disabled World (DW)
Published: 23 Jan 2010 - Updated: 5 Sep 2026
Publication Type: Informative

Table of Contents:
Synopsis - Definition - Overview - FAQs - Insights, Updates - Related Content

Synopsis

This information provides practical guidance on how Canadians with disabilities can access the First Home Buyers Tax Credit (HBTC), a federal tax benefit that offers $750 toward home purchases. The content is authoritative because it draws directly from Canada Revenue Agency requirements and tax regulations, making it particularly valuable for disabled individuals and their families who are navigating the home-buying process. Unlike typical first-time buyer programs, this credit includes special provisions for people with disabilities - they don't need to be first-time buyers if purchasing a home specifically for accessibility or care needs. The article breaks down eligibility criteria, explains what types of housing qualify, and clarifies the connection between the Disability Tax Credit and HBTC eligibility, helping readers understand whether they qualify and how to claim this financial benefit.

At a Glance

• 1 - The HBTC applies to qualifying homes acquired after January 27, 2009. It is a non-refundable credit, so it will not generate a refund on its own.
• 2 - The credit equals the lowest personal income tax rate multiplied by $5,000. In 2009 that rate was 15 percent, producing the $750 benefit.
• 3 - A qualifying home must be located in Canada and can be existing or under construction. Single-family homes, condominiums, mobile homes, and apartments in duplexes or larger buildings all count.
• 4 - Buyers do not need to submit purchase documents with their tax return, but they must keep them on hand. The Canada Revenue Agency can request this proof at any time.

Topic Definition

First Home Buyers Tax Credit

The First Home Buyers Tax Credit is a non-refundable federal tax credit in Canada that helps offset the costs tied to purchasing a qualifying home. Worth $750, it is calculated by applying the lowest personal income tax rate to a fixed base amount of $5,000. While the credit is generally aimed at first-time buyers, it carries an important exception for people with disabilities: those who qualify for the Disability Tax Credit, or their close relatives buying on their behalf, can claim it even if they have owned a home before, provided the new home better suits accessibility or care needs. In practice, the money can go toward legal fees, moving expenses, or accessibility modifications, and buyers simply need to keep their purchase records available in case the Canada Revenue Agency asks to see them.

Overview

How is the HBTC Calculated?

The HBTC is a non-refundable tax credit for certain homebuyers in Canada who acquire a qualifying home after January 27, 2009.

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.

Who is Eligible for the HBTC

You will qualify for the HBTC if:

• You or your spouse or common-law partner acquire a qualifying home; and
• You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
• If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim the disability tax credit (DTC) or would be eligible to claim the DTC if costs for attendant care or care in a nursing home were not claimed for the medical expense tax credit.

What is a Qualifying Home

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as apartments in duplexes, triplexes, fourplexes, and apartment buildings all qualify.

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

As well, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after buying it.

Things to Remember

The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system.

You do not have to submit documents supporting your purchase transaction with your income tax and benefit return. However, you have to make sure that this information is available if the Canada Revenue Agency asks for it.

Frequently Asked Questions

Can the HBTC be split between two people buying a home together

Yes, co-buyers such as spouses or common-law partners can share the credit, but the combined claim cannot exceed the maximum $750 amount for that home.

Does the HBTC affect other government disability benefits

No, claiming the HBTC does not reduce or interfere with disability supports such as the Disability Tax Credit or provincial assistance programs.

Is the HBTC available for homes purchased outside of Canada

No, only a housing unit located in Canada qualifies, so properties bought in other countries are not eligible for this credit.

Do I need to be approved for the Disability Tax Credit before buying the home

You must be eligible for the DTC, and it is wise to confirm that eligibility before claiming, since the Canada Revenue Agency may verify it later.

Can I claim the HBTC if I build my own home instead of buying one

Yes, homes under construction qualify as long as you intend to occupy the finished home as a principal residence within one year.

How do I actually claim the HBTC on my tax return

You claim the credit on the designated line of your income tax and benefit return for the year in which you acquired the qualifying home.

Is the $750 amount ever adjusted for inflation or rising home prices

The base calculation has stayed fixed rather than tracking housing costs, so the credit continues to reflect a set amount rather than market values.

Can a family member claim the HBTC for a relative with a disability

Yes, a related person can claim it when buying a home to help someone with a disability live in a more accessible or care-suited environment.

Insights, Analysis, and Developments

Editorial Note: Understanding the intersection between disability benefits and homeownership programs can mean the difference between renting and owning for many Canadians with disabilities. The HBTC's recognition that accessible housing needs may require moves throughout a person's life - not just a single first-time purchase - reflects an important shift in how tax policy addresses disability realities. While $750 may seem modest against today's housing costs, it can cover legal fees, moving expenses, or modifications that make a new home truly livable. What matters most is knowing that these options exist and that government programs increasingly acknowledge that disability-related housing needs deserve special consideration within broader financial frameworks.

Author Credentials: Ian is the founder and Editor-in-Chief of Disabled World, a leading resource for news and information on disability issues. With a global perspective shaped by years of travel and lived experience, Ian is a committed proponent of the Social Model of Disability, a transformative framework developed by disabled activists in the 1970s that emphasizes dismantling societal barriers rather than focusing solely on individual impairments. His work reflects a deep commitment to disability rights, accessibility, and social inclusion. To learn more about Ian's background, expertise, and accomplishments, visit his full biography.