Earlier in April, we heard the Department of Finance Canada come together and release their budget to help make housing more affordable and achievable for Canadians. Below I have highlighted their objectives to make it happen:
First-time buyers:
A tax-free first home savings account. Save up to $40,000 – contributions and withdrawals would be tax-deductible. Tax-free in/out.
Extending the first-time buyer incentive to March 31, 2025. Read more about this incentive here.
Doubling the First-Time Home Buyers’ Tax Credit amount to $10,000.
Property flippers:
Introducing a new rule to fully tax their profits as business income if the home is sold before owning for a full year. This applies to residential properties sold on or after Jan 1, 2023. Exemptions would apply for certain circumstances.
Protection for ALL buyers:
The government will create and implement something called a “Home Buyers’ Bill of Rights” in an effort to ban blind bidding and subject-free offers.
Foreign buyers:
Banning anyone who is not a Canadian citizen or permanent resident from purchasing non-recreational residential properties in Canada for two years.
Living with family:
To support multigenerational homes, the government is introducing something called a Multigenerational Home Renovation Tax Credit. Providing up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability. This will start in 2023.
There are a few more important highlights that the budget is outlined to support such as investing in housing for Indigenous communities, rapidly building more homes and support to end homelessness. View the entire list here.
What are your thoughts on the new federal budget for 2022?
Chat soon,
Nina