The federal budget promises $10 billion to make housing more affordable. Measures include tax credits for a variety of items, but the big ones, at least to me are:

1. A two-year ban on foreign buyers
2. Sales taxes on assignment sales
3. No principal residence exemption for properties bought and sold within 12 months
4. Multigenerational Home Renovation Tax Credit

This is a refundable tax credit for Canadians who are taking home building into their own hands. Families who are constructing a secondary suite for a senior or adult with a disability would be able to claim 15 percent of up to $50,000 in eligible renovation and building costs, resulting in up to $7,500 worth of savings.

1. Tax-Free First Home Savings Account

Starting in 2023, first-time homebuyers would be able to save up to $40,000 in a new account. As with a registered retirement savings plan, contributions – in this case, up to a maximum of $8,000 a year – would be tax-deductible. And, as with a tax-free savings account, withdrawals would be tax-free. Investment growth inside the account would also be tax-free.

1. Doubling the First-Time Home Buyers’ Tax Credit: First-time buyers who’ve purchased a property on or after Jan. 1 would be able to claim $10,000 – up from the current $5,000 – which would double the maximum non-refundable tax rebate from $750 to $1,500.
2. Doubling the home accessibility tax credit: Seniors would be able to claim a maximum of $20,000 worth of expenses for upgrades such as walk-in bathtubs and wheelchair ramps that make their homes more accessible. The new ceiling would be double the current cap on eligible expenses and would result in a maximum tax credit of $3,000.

I should stress these are not effective yet, simply announced. No doubt this will result in a few changes in the real estate market, with more to come over the next few weeks. Expect to hear more on, the cooling-off period and increases for both variable, fixed, and qualifying interest rates.

Details of the budget are available online, but I found this article from the Globe and Mail to provide a good summary – Here’s how the 2022 federal budget affects home buyers and consumers – The Globe and Mail

If you or a loved one have a mortgage up for renewal, debt outside your mortgage to consolidate, a home renovation project or an upcoming home purchase coming up, please email callateam@countoncalla.ca to get started on reviewing your options.

Angela Calla

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

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