Federal budget 2022: a “national effort” to alleviate the housing crisis


As the housing crisis continues to grow, a “national effort” of $10 billion out of five will be put forward by the federal government to facilitate access to property and increase the supply of housing. affordable.

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“Canada does not have enough housing,” summarized Deputy Prime Minister Chrystia Freeland, who devotes the entire first chapter of her budget to this subject.

To meet this growing challenge, the Minister of Finance has set herself the objective of doubling the number of housing units under construction within 10 years.

To achieve this, $4 billion will be invested in the creation of a new fund, which should make it possible to accelerate the construction of 100,000 affordable housing units.

Help for first-time buyers

The Trudeau government will also come to the aid of first-time buyers. As promised during the election campaign, a new tax-free savings account allowing savings up to a maximum of $40,000 for the purchase of a first property will be introduced. However, it will be necessary to wait until 2023 before being able to contribute to it, the time to allow the banks to complete its implementation.

The tax credit for the purchase of a first home will also be doubled, which will allow buyers to receive $1,500, instead of $750, retroactively to the 1er January 2022.

A new tax credit for the renovation of multigenerational homes will also be introduced in 2023, which will provide assistance of up to $7,500.

Curb overheating

Ottawa will also try to make the market more “equitable”, by preventing foreigners from buying residential properties on Canadian soil, and by prohibiting blind offers, which drive up the price of properties.

And we will soon have to think twice before embarking on a real estate flip, a practice which consists of making a buck by buying a house, to resell it at a profit after having renovated it.

From next year, a person who resells a property less than 12 months after buying it will have to pay tax on the profit.

A few exceptions will apply (death, birth of a child, new job, divorce, etc.).

Accommodation measures

$10 billion over five years

  • Including $4 billion to accelerate the construction of 100,000 affordable housing units
  • Double the assistance provided under the First-Time Home Buyers’ Tax Credit from $750 $1,500
  • Introduce a tax credit for the renovation of multigenerational housing, making it possible to receive up to $7,500 for the construction of a secondary dwelling
  • $475 million in 2022-23 for a one-time payment of $500 to those who have difficulty finding affordable housing

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Reference-www.journaldequebec.com

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