Cheat Sheet for Upcoming Real Estate Changes in Canada

Confused about what will change based on the recent Federal Election? 

Below is an outline of the points that the Government will be addressing in regards to real estate:

Construction and Development
  • Build, preserve and revitalize 1.4 million homes by 2025-2026.
  • Invest $4-billion into a Housing Accelerator Fund with a target of creating 100,000 new middle class homes by 2024-2025.
  • Invest in e-permitting technology to speed up the building process and work with municipalities to identify vacant or underutilized properties for housing development.
  • Increase funding to the National Housing Co-Investment fund by $2.7 billion over four years.
  • Double the existing ​​Budget 2021 commitment to $600 million for the conversion of office and retail space into housing. The federal government would work with local municipalities to speed up the conversion process.
  • Create a 15 per cent Multi-generational Home Renovation tax credit for up to $50,000 in renovation and construction costs towards adding a secondary unit to their home for a family member.
Home Buyers Incentives and Protections
  • Create a tax-free First Home Savings Account that will allow Canadians under 40 years old to save up to $40,000 towards their first home.
  • Adjust the First-Time Home Buyers’ Incentive (FTHBI) so that participants can either choose between the current shared equity option or a loan that is repayable when the property is sold.
    Increase the First-Time Home Buyers Tax Credit from $5,000 to $10,000.
  • Reduce the price of Canadian Mortgage and Housing Corporation (CMHC) mortgage insurance by 25 per cent, and boost the insured mortgage cut-off level from $1 million to $1.25 million.
  • Create a Home Buyers’ Bill of Rights that will ban blind bidding, create a legal right to a home inspection, create a publicly-accessible ownership registry and require real estate agents to disclose if they represent both sides of the sales transaction.
  • Create an anti-flipping tax to require that properties be held for a minimum of 12 months. Canadians in certain life circumstances would be exempt from the tax.
  • Ban ​​foreign money from purchasing a non-recreational residential property for the next two years unless the property is confirmed to be used for future employment or immigration purposes in that two-year period.
  • Extend the national tax on non-resident, non-Canadian owned vacant properties to foreign-owned vacant land. The tax will be implemented on January 1st, 2022.
Social Programs
  • Collaborate with Indigenous partners to co-develop an Urban, Rural, and Northern Indigenous Housing Strategy.
  • Work with Indigenous partners to create a National Indigenous Housing Centre with Indigenous People overseeing the federal Indigenous housing programs.
  • Appoint a Federal Housing Advocate within the first 100 days to ensure government commitments towards ending chronic homelessness are being fulfilled.
  • Introduce a rent-to-own program based on three components: the landlord must charge below market rate to encourage savings for a down payment, the landlord must commit to ownership in a five-year term or less, and homeowner safeguards will be put in place. $1 billion will be dedicated to develop rent-to-own projects.
  • Deter unfair rent increases that lead to renovictions, and require landlords to declare on their taxes the rent they received pre- and post-renovation.
  • Review the tax treatment of large corporate rental owners.
Source: Livabl_ by BUZZBUZZHOME