Housing Highlight - Federal Budget 2022
On April 7, 2022, the federal government released their budget plan for 2022. Although several topics were brought up (Job growth, climate, affordability etc.), these were the main proposals that I would highlight that would affect the common home buyer. Click here to review the federal budget plan.
BUYING AND SAVING FOR THE COMMON HOME BUYER
1. Tax Free Home Savings Account
- A savings account that will let a first time home buyer save up to $40,000
- Contribution will be tax deductible (Like an RRSP)
- Withdrawal will be non-taxable (Like a TFSA)
2. Extension to First Time Home Buyer's Incentive
- The FTHB incentive will be extended to March 31, 2025
- Click here for more details and eligibility
3. Doubling the First Time Home Buyer's Tax Credit
- Proposal to double the first time home buyer's tax credit to $10,000
- Aiming to provide up $1,500 back to the home buyer
4. Home Buyer's Bill of Rights
- An initiative to end blind bidding
- A bill to provide further transparency and to allow for home inspection
- This will empower young and middle class home buyers
Building Affordable Living
1. New Housing Accelerator Fund
- $4 billion over the next 5 years to provide to speed up housing development
- Flexible funds that many cities and communities need (Support for annual per-door incentives, upfront funding for investments etc.)
2. Rapid Housing Initiative
- $1.5 billion proposal to extend the rapid housing initiative
- Expected to create at least 6,000 new affordable housing units
3. Multigenerational Home Renovation Tax Credit
- Providing up to $7,500 in support to building secondary suite for a senior or adult with a disability
Property Flippers Pay Their Share
- Property that has been held for less than 12 months would be subject to full taxation
- Proposal is to target properties sold on/after Jan 1, 2023
- Exception can be made based on circumstance and reason
Foreign Investor Ban
- Restrictions that would prohibit foreign commercial enterprises and non-residents from acquiring residential property
- Proposed for a restriction period of 2 years
