If I purchase a rental property, and I’ve never owned a primary residence, can I utilize the First time Home Buyers Plan?
Allan Madan, CA
Unfortunately the answer is No. One of the conditions to qualify for the First Time Home Buyers Plan is that you intend to occupy the home as your principal residence no later than one year after buying, or building it. Since your intention of buying the property is to generate rental income, you do not intend to use the property as your principal residence.
Therefore, you are not eligible for the First Time Home Buyers Plan. On the other hand, purchasing a rental property doesn’t void your ability to utilize the First time Home Buyers Plan in the future. In other words, you can still qualify for the Plan if in the last five years a property that you owned was not occupied by you personally.
For example, assume that you purchase a rental property in June 2013 and you do not own any other real estate in Canada. If you do not live in a property in Canada that you own, then you will qualify for the First Time Home Buyers Plan in 2019.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.