This is how the First Time Home buyer 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.
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