Housing affordability seemed to be a priority of the 2022 Federal budget; however, it will remain to be seen how effective some of the actions will prove to be. Buying a home in Canada has become increasingly out of reach for many Canadians, but will this new budget be enough to change the current market?
“TRREB is encouraged that governments at all levels continue to make housing affordability a priority, but it is critically important that governments take actions that will have meaningful impacts. All levels of government should be implementing evidence-based initiatives that address the real cause of affordability challenges, which is an inadequate supply of homes for sale or rent,” said TRREB President Kevin Crigger.
While the Toronto Regional Real Estate board is in favour of the budget actions intended to increase housing supply, it did express concern when it came to the effectiveness of policies intended to suppress demand. In particular, they feel that the focus on reducing foreign buyers only represents a small percent of the problem for buyers and doesn’t focus on some of the real issues plaguing the market.
How Future Home Buyers May Benefit from the 2022 Federal Budget
While it will certainly take some time to see the benefits of new measures implemented, a quick summary does demonstrate that hopeful home buyers could finally be getting additional support. To start, the goal is to double new housing construction by 2032 which will provide more options for future home buyers.
Let’s take a closer look at some of the details:
- A new housing accelerator fund totaling $4 billion over five years, starting this fiscal year. This will provide support to municipalities in an effort to speed up housing development.
- Creating at least 6,000 new affordable housing units, with at least 25 per cent of funding going towards women-focused housing projects.
- A new multigenerational home renovation tax credit that can provide up to $7,500 towards a secondary suite for a senior or an adult with a disability, starting in 2023.
- A new tax-free first home savings account where first-time buyers can save up to $40,000 tax-free. Contributions would be tax-deductible, and withdrawals to buy a first home would be non-taxable.
- The first-time home buyers’ tax credit is increasing to $10,000, providing up to $1,500 in direct support to home buyers, applying to homes bought on or after January 1, 2022.
- Anyone selling a property they’ve held for less than 12 months will be taxed on their profits as business income, effective January 1, 2023. Exceptions will be made for sales due to life circumstances.
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Once of the most helpful things home buyers can do is find an experienced real estate agent that can help decipher and navigate the current market. With more than a decade of proven experience, award winning Oakville realtor Sue Heddle Homes can help make your home buying experience more successful and more enjoyable. With incredible industry knowledge and effective negotiation skills, let Sue and her team help you find the home you want. Ready to get started? Call Sue at 416-906-7998.