Federal Government Announces New Housing Initiatives in the 2022 Federal BudgetApril 13, 2022
Last week, the federal government tabled its 2022 Budget. At the forefront, the government is instilling measures to make housing more affordable to Canadians, especially first-time home buyers. Here are some of the highlights of the federal housing initiatives: Housing Accelerator Fund The federal government plans to invest $4 billion in a new Housing Accelerator Fund to create 100,000 new middle-class homes by 2024-25. Municipalities will be able to apply for support from the fund to aid initiatives that will help grow the housing supply faster, increase densification, and speed up approval times. First-Time Home Buyer’s Tax Credit The Liberal government also announced that it would be doubling the First-Time Home Buyer’s Tax Credit for a maximum rebate of $10,000 retroactive to January 1, 2022. The credit aims to make the housing market more affordable to first-time home buyers. Tax-Free First Home Savings Account This new account will let those saving for a home contribute up to $40,000, tax-free, to a newly classified account. The funds can only be used to purchase a home. Temporary Ban on Foreign Home Purchases The federal government plans to ban the purchase of Canadian homes from foreign buyers, including from foreign commercial enterprises, for two years. Taxation for Property Flippers Those who sell a property they’ve held for less than 12 months will be taking home less profit starting in 2023. The federal government will apply the full tax rate on the seller’s profits as business income, excluding it from the capital gains inclusion rate or the principal residence exemption. Questions on the federal budget and how it might impact your decision to buy, sell, or refinance? Give us a call 705-805-9055.