First time home buyes may be eligible for a 15% income tax credit for closing costs. (Line 369 of your Schedule 1, Federal Tax forms) You can claim a maximum of $10,000 worth of expenses (ie. legal fees, land tranfer taxes, etc) for the purchase of a qualifying home which could be a tax relief of $1500.00.
To qualify for this credit you must meet the following criteria:
- You must be a first time home buyer
- you or your spouse or common-law partner acquired a qualifying home in the year that you apply for the tax credit; 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 (first-time home buyer)
For futher information please visit the CRA webiste at http://www.cra-arc.gc.ca/hbtc/