Deputy Prime Minister and Minister of Finance, Chrystia Freeland, released the Fall Economic Statement on November 21, 2023. Here is an overview of key housing measures that may affect you:
Making Housing More Affordable
The federal government acknowledges the need for long-term housing solutions. To address short-term rentals, starting January 1, 2024, deductions for expenses related to short-term rentals may be denied in areas where they are prohibited.
Underused Housing Tax (UHT)
Introduced in 2022, UHT imposes a one percent tax on non-resident, non-Canadian owned vacant or underused residential real estate. Recent changes:
- Excluded Owners: Certain Canadian entities may become excluded owners.
- Penalty Reduction: Minimum penalties for late UHT filing have been lowered.
- Extended Deadlines: The deadline for filing UHT returns for 2022 and 2023 has been extended to April 30, 2024.
Canadian Mortgage Charter
A new Canadian Mortgage Charter is in the works to regulate financial institutions during elevated interest rates and financial stress.
Key relief measures:
- Temporary extensions of mortgage amortization periods.
- Waiving fees for relief measures.
- No re-qualification under the insured minimum qualifying rate when switching lenders.
- Early contact before mortgage renewal.
- Options for lump-sum payments or selling the principal residence without prepayment penalties.
- No interest on interest during mortgage relief measures.
These changes can impact your housing decisions. Ask me if you have any questions.