On March 28, 2023, Canada's Finance Minister Chrystia Freeland tabled this year's federal budget.
The following, in point form, are some highlights that touch the housing market:
- A two-year ban on non-resident, non-Canadians purchasing residential property is in effect to curb speculation and ensure houses are used as homes for Canadians.
- The Tax-Free First Home Savings Account is here! This will allow first-time buyers to save up to $40,000 tax-free to buy their first home.
- Profits from flipping properties held for less than 12 months are fully taxed as income.
- The First-Time Home Buyers' Tax Credit has doubled to provide up to $1,500 indirect support to home buyers to offset closing costs.
- The Multigenerational Home Renovation Tax Credit provides up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability.
- GST/HST will be applied to all assignment sales of newly constructed or substantially renovated residential housing.
- A top-up to the Canada Housing Benefit in December 2022 provided low-income renters with a $500 payment to help with the cost of housing.
If you have any other questions regarding this year’s budget, and how it will impact the housing market, please feel free to contact us.
Fred and Martin – Mortgages