In recent weeks, there have been numerous talks about the taxation of the sale of principal residences, which talks made many homeowners fear these sweeping measures. However, Finance Minister Chrystia Freeland’s first budget left it untouched. The Government took a so called “Hands-Off Approach to Housing”, to the surprise of many lawmakers.
As the focus on ensuring first-time homebuyers and supply issues aren’t ignored, a few different proposals to address same are at the discussion stage and will be announced in the coming weeks.
For the time being, the main measure to increase housing supply currently imposed under the federal government’s budget plan as an annual 1-per-cent tax on the value of residential real estate that is considered to be “unproductive use of Canadian housing,” and owned by non-resident non-Canadians.
This 1% vacant property tax to be levied on properties owned by non-residents. The federal plan is to go into effect January, 2022.
Whether this change will have any impact on home affordability will remained to be seen as many experts are sceptical that it will.
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