Filing Taxes as a First-Time Homeowner in Canada

Buying your first home is a major milestone—but it also changes how your personal tax return is prepared. Many first-time homeowners are surprised to learn that homeownership brings both opportunities and limitations at tax time.

One of the most important benefits available is the Home Buyers’ Amount, a federal non-refundable tax credit designed to help offset closing costs. Eligible buyers can claim this credit on their personal return, as explained by the CRA under Line 31270 – Home buyers’ amount.

For homeowners who work from home, tax treatment can change after moving from renting to owning. While mortgage interest is not deductible for personal residences, certain expenses—such as utilities, internet, and maintenance—may be partially claimable if eligibility criteria are met. The CRA outlines which costs may qualify under its guide to home office expenses for employees.

Another often-missed deduction relates to moving expenses. If you moved at least 40 kilometres closer to a new job or educational institution, certain moving costs may be deductible. The CRA details eligibility rules and allowable expenses under Line 21900 – Moving expenses.

Even when expenses are not deductible, first-time homeowners should maintain strong records. Property tax bills, school tax notices, legal documents, and receipts for improvements may be important for future tax planning, refinancing, or sale.

How A&S Financials Helps

A&S Financials helps first-time homeowners identify eligible credits, apply work-from-home rules correctly, and organize documentation for long-term tax efficiency.

Final Thought

Your first tax season as a homeowner sets the foundation for years ahead. Understanding the rules early helps prevent missed benefits and future complications.