The Government of Canada’s: A Plan to Grow Our Economy and Make Life More Affordable Highlights
Canada’s Minister of Finance released the 2022 federal budget. The Government of Canada’s A Plan to Grow Our Economy and Make Life More Affordable includes measures to address housing affordability – the largest spending item in the entire budget.
- First Home Savings Account: tax-free savings account to contribute up to $8,000 per year – withdrawal entirely tax-free
- Municipal funding to build more homes: delivering $4 billion in incentives for municipalities to accelerate permit and approval processes, with the goal of building 100,000 new units over the next five years nationally
- Doubling First-Time Home Buyers’ Tax Credit: to $10,000 for homes purchased on or after January 1, 2022.
- Extending First-Time Home Buyer Incentive: to March 31, 2025
- Ban on foreign investment in Canadian housing: for the next two years – this will apply to condominiums, apartments, and single-residential units. Permanent residents, foreign workers, and students will be excluded
- Multigenerational Home Renovation Tax Credit: new refundable tax credit to renovate homes to accommodate aging parents or family members with a disability – able to claim 15% up to $50,000, a maximum refund of $7,500 per project
- Creating national public beneficial ownership registry: accelerating by two years its commitment to amend the Canada Business Corporations Act to implement a public and searchable beneficial ownership registry, now accessible before the end of 2023
- Homebuyers’ “Bill of Rights”: would ban the traditional offer process to ensure an open offer process – similar to the auction process seen in countries like Australia and New Zealand – mandatory for all buyers and sellers to keep prices low and increase transparency