Many people assume a first-time home buyer is someone who has never owned a home before. However, in Canada that is not always the case.
For many federal programs, eligibility depends on whether you have lived in a home you owned within the past four calendar years. This means some people who have owned a property before may still qualify for first-time buyer benefits.
The Four-Year Rule
The main test for first-time buyer eligibility is the four-year rule.
Generally, you may qualify if you have not lived in a home you owned or jointly owned as your principal residence during the current year or any of the previous four calendar years.
This allows some former homeowners to regain first-time buyer status after enough time has passed since selling their previous home.
Your Partner’s History Matters
Your eligibility can also be affected by your spouse or common-law partner’s home ownership history.
Even if your name was not on the title, living in a home owned by your partner during the qualifying period may impact your eligibility for programs like the FHSA and HBP.
Homes Outside Canada May Count
The rules are not limited to properties in Canada. If you owned and lived in a home outside the country during the qualifying period, it may also affect your eligibility.
Many Property Types Qualify
A qualifying home can include more than detached houses. Depending on the program, eligible properties may include:
• Detached and semi-detached homes
• Townhouses
• Condominiums
• Mobile homes
• Duplexes, triplexes, and fourplexes
• Certain co-operative housing shares
Know Your Eligibility Before Buying
The definition of a first-time home buyer is broader than many people realize. Reviewing your ownership history and understanding available programs can help you take advantage of valuable incentives when purchasing a home.