Yesterday the federal government tabled the 2022 federal budget. While it seems that we are getting away from the spend your way out of the pandemic, this one seems more focused on the need to improve access to housing for Canadian’s. Here is how it is going to effect the real estate sector.
- They will invest 4 Billion over 5 years starting this year on a new housing accelerator fund aimed at increasing municipal housing.
- $1.5 Billion over the next two years on a rapid housing initiative with 25% aimed at financing for Women focused housing projects.
- A $7,500 tax credit to renovate your home or create a back yard suite for family or someone with a disability.
- The creation of a new tax free savings account for those under 40, that will allow first time home buyers to save up to $40,000 with tax free investments and tax free withdrawals.
- Increasing the firs time home buyers tax credit up to $10,000 with $1,500 in support directly to home buyers and it will be retroactive to home purchased since January 1st/2022.
- They are also increasing the home accessibility tax credit to $20,000, this is for renovations or alterations that improve a home’s accessibility.
- They are putting aside $475 million to provide a one time $500 payment to those facing a housing affordability challenge
- There will be a new rule implemented as of January 1/2023 labeled as the anti flipping rule as it will impose a tax on the profits of a sale of a home if it was owned for less than 12 months. This will focus on those who attempt to flip for profit rather than those who’s family situations require the sale of the home.
- They have also announced $5 million towards the creation of a home buyers bill of rights aimed at ending blind bidding. This will also include a legal right for home inspections something buyers have been waiving in favour of winning the bid.
- A temporary ban of foreign buyers ( non owner occupied) from buying residential properties here over next two years.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here