Qualifying for the Home Buyers’ Plan
Living in someone else's house could leave you ineligible
Why are mortgages so expensive in Canada?
Created By
Ratehub.ca
Q: My boyfriend and I have lived together for the last year in a house he bought before we met. Now, we plan on buying a place together. But when I asked my bank advisor how to use the Home Buyers’ Plan, he said we no longer qualify because we are not first-time buyers. Is this true?
—Amanda, Calgary
A: The confusion has to do with when you and your boyfriend are first considered a common-law couple. Typically, provincial rules dictate when this designation applies, but under federal law a couple is considered common-law if they’ve lived together for at least a year. To qualify for the federal HBP, you must be a first-time home buyer, or someone who has not owned, or lived with someone who has owned, property in the four years before applying to use your RRSP money through the HBP. So your bank advisor is correct: You don’t qualify as a first-time home buyer because you lived with your boyfriend as a common-law spouse and he owned property. Also, unfortunately, neither of you will qualify for the Home Buyers’ Tax Credit, a rebate of up to $750 given to first-time buyers (based on the same criteria as the HBP).
Related:
- Can I use the HBP a second time?
- Recovering from bad Home Buyers’ Plan advice
- Ontario doubles first-time homebuyer tax rebate
Ask a Real Estate Expert: Ask our experts your property or real estate question »
Romana King is the senior editor and real estate specialist at MoneySense. She is also a licensed real estate sales agent. Follow her on Twitter (@RKHomeowner) or on Facebook.
[brightcove video_id=”6024375369001″ account_id=”6015698167001″ player_id=”lYro6suIR”]
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
MoneySense at the MoneyShow: Capital gains and ETF sessions
Here’s how to get your free ticket to attend two MoneyShow virtual expos.
Where are rent prices headed in Canada?
A new Desjardins report predicts rent inflation will slow in the next few years.
What to know as Canada’s capital gains tax changes remain in legal limbo
The federal government’s capital gains inclusion rate increase has yet to become law. There’s a slight chance it may...
How Trump’s election win could affect interest rates in Canada
Experts say Donald Trump’s promised policies risk higher inflation and could weigh on the Canadian dollar.
Looking for a mortgage in B.C.? Don’t limit your options to the big banks
Sponsored By
Coast Capital
Why are Canadians still frustrated with the economy?
Inflation is down, wages are up. But the economic recovery has been uneven, with “two contradictory trends” shaping Canadians’...
Alberta called—“What I wish I’d known before making the move”
“After rushing into the real estate market, I quickly learned I wasn’t ready for the real cost of home...
My boyfriend and I have been living together, but renting for the past 2.5 years. Before we lived together, he bought an investment property, which he currently receives rental income from and has never lived in it. If my boyfriend and I are looking to buy a home, would we be disqualified for the first time home buyers plan?
If so, could I then apply alone?
My son who lives with me wants to buy a house. He wants me to be a joint owner and I already own a house. Will he qualify for a first time HBP