8 First Time Home Buyers Incentives That Are Coming Out This Year

by

The federal government adopted 8 different strategies to help Canadians to buy homes. These changes will be taking effect this year and this video talks about everything you need to know to take advantage of buying real estatThe federal government adopted 8 first time home buyers incentives to help Canadians to buy homes. These changes will be taking effect this year and this video talks about everything you need to know to take advantage of buying real estate.

  1. Foreign buyer ban
    • Took effect on January 1st
    • Federal government aims to make houses ‘more affordable’ for Canadians
    • Max fine – $10,000 + MAY BE required to sell the property
    • Repercussions may be too soft
    • Only about 3-4% of condos in Ontario are owned by foreign investors
    • Foreign investors provide an incentive for builders to continue increasing housing supply
  2. First time Buyer Tax Credit
    • Tax credit of up to $1,500 to qualified buyers
    • The Budget 2022 increased threshold from $5,000-$10,000
  3. Multigenerational Home Renovation Tax Credit
    • Additional apartment can be built to accommodate the elderly and disabled
    • Families could claim up to $7,500 in tax credits
    • For construction that began after January 1st, 2023
    • Unit must have: separate entrance, kitchen, bathroom, sleeping area
  4. Flipping rule
    • Took effect on January 1st
    • Earnings from flipping are fully taxed
    • Residential properties + rental units owned for less than 1 year
  5. First home savings
    • Begins in April 2023
    • First-time buyers may save up to $40,000 tax-free
    • $8,000 yearly contribution cap
  6. Assignment sales
    • Begins in May 2023
    • ALL assignment sales will become subject to GST/HST
    • Affects all assignment agreements made after May 6, 2022
  7. Unoccupied tax
    • 1% yearly tax will be applied to the value of any unoccupied property owned by foreign individuals
    • Some Canadians will have to fill out the UHT forms for 2022, by April 30 2023
  8. Stress test
    • OSFI will not be changing the stress test
    • Stress test is used to qualify buyers at a higher interest rate
    • Done to ensure that the buyers are able to keep up with mortgage payments if rates continue to rise.

These are the 8 first time home buyers incentives that have been introduced this year. Do you think they will be helpful to you in purchasing your first home?

Compare