Housing is the centrepiece of the federal government’s 2022 budget. Here are some of the proposed programs and tax measures:

  • One-time $500 payment to “those facing housing affordability challenges”, with a total of $475 million allocated in 2022-23 to pay for this.

  • Doubled First-Time Homebuyer’s tax credit, to offer a tax break of $1,500 for first-time homebuyers. 

  • Tax credit for renovating for relatives to move in, which would allow families to recover 15% of eligible expenses up to $50,000 for the creation of a secondary dwelling unit. 

  • Increased Home-Accessibility tax credit from $10,000 to $20,000. This allows recipients to reduce their tax owing by up to $3000 for undertaking accessibility renovations. 

  • $40,000 tax-free first home savings account, Like a Registered Retirement Savings Plan, contributions to the account would be tax-deductible, while withdrawals to make a first-home purchase, including income earned on the money in the account, would be tax-free.

  • House-flippers selling a property after they’ve owned it for less than 12 months will see their profits taxed as business income

  • No more GST/HST exemptions for new home assignment sales, according to the federal government the current rules for payment of HST/GST on the resale of housing that hasn’t yet been constructed or occupied gives opportunity to speculators to avoid it (the tax doesn’t apply, for example, if the buyer had intended to live in the home)