Last week Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the Federal Governments Fall Economic Statement for 2022 which highlighted their initiatives to boost growth within the housing market come 2023.

Here are the Coles notes:

• The housing market projected a deficit of $36.4-billion in the current 2022-23 fiscal year, improving from a forecasted $52.8-billion in the spring budget. However, it was not as slim of a deficit as many private-sector economists expected.
• The Federal Government will spend $22.1-billion over six years with a reserve fund of $8.5 billion for “anticipated near-term pressures” ie recession.
• They also reiterated its commitment to build more homes and make housing more affordable across the country. Not really sure how this one is going to play out, but hopefully they’ll elaborate in the months to come.

Their BIG promises for 2023:

1. They introduced a new TFSA to help young Canadians save for a down payment faster. This account allows first time home buyers to save up to $40,000 through their TFSA account. Think of this like the RRSP savings plan they currently have in place, but you won’t have to pay back the amount withdrawn over the following 15 years.
2. Reduce closing costs by doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers, starting in 2022, to offset the increasing closing costs involved in buying a home.
3. Introduce a new, refundable Multigenerational Home Renovation Tax Credit, to provide up to $7,500 in support for constructing a secondary suite for a family member who is a senior or an adult with a disability – starting January 1, 2023.
4. Home Flippers fully taxed on profits if they sell within 12 months. This will deter home flippers/developers from profiting from quick purchase and sale.

Reach out to me and my team if you have any questions, or if there’s anything I can do to help.