Federal Government Budget
Federal Government Releases Budget 2024
Deputy Prime Minister and Minister of Finance, the Honorable Chrystia Freeland, tabled the fourth budget of the 44th parliamentary session, Fairness for Every Generation, a budget they say is heavily focused on building “a Canada that works better for you, where you can get ahead, where your hard work pays off, where you can buy a home—where you have a fair chance at a good middle class life."
The majority of the housing measures reflected in Budget 2024 were announced over the last several weeks, with the final release of Canada’s Housing Plan on Friday, April 12, 2024, an ambitious action plan aimed at addressing Canada’s housing crisis. In response to this announcement CREA released a press release, applauding the federal government’s “all hands on deck” approach.
There are new housing related measures announced in Budget 2024:
The majority of the housing measures reflected in Budget 2024 were announced over the last several weeks, with the final release of Canada’s Housing Plan on Friday, April 12, 2024, an ambitious action plan aimed at addressing Canada’s housing crisis. In response to this announcement CREA released a press release, applauding the federal government’s “all hands on deck” approach.
There are new housing related measures announced in Budget 2024:
- The government will consider introducing a new tax on residentially zoned vacant land and will launch consultations later this year.
- The government intends to increase the inclusion rate on capital gains realized annually above $250,000 by individuals and on all capital gains by corporations and trusts from one-half to two-thirds, by amending the Income Tax Act, effective June 25, 2024.
- The government intends to establish a subsidiary of the Canada Mortgage and Housing Corporation (CMHC) to deliver flood reinsurance.
- The government intends to restrict the purchase and acquisition of existing single-family homes by very large corporate investors. The government will consult in the coming months and provide further details in the 2024 Fall Economic Statement.
- The government is exploring new measures to expand access to alternative financing products, like halal mortgages.
Elements of the budget are concerning as it relates to new tax measures and, over the following weeks, we will analyze the implications of these announced measures, specifically the impact of the increase of the inclusion rate on capital gains on secondary properties, and the potential impact on REALTORS®, their clients, housing supply, and the housing continuum.
Budget 2024 has explicitly restated the exemption for capital gains from the sale on principal residences has been maintained. We will vigorously hold the government to this commitment.
Budget 2024 has explicitly restated the exemption for capital gains from the sale on principal residences has been maintained. We will vigorously hold the government to this commitment.
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