Budget 2024: Everything You Need to Know

Date Posted: April 17, 2024

 

 

 

 

In the government’s recently announced budget for 2024, they outlined several proposed tactics to tackle the urgent needs of building more homes, making life more affordable and ways to grow the economy. In this article we will dive into everything you need to know about the newly proposed changes relating to housing, homeownership, and mortgages.

 

Note: the newly released budget was announced on April 16^th and while some changes have set dates of commencement, other changes have only been proposed and will need further approval for them to take action.

 

Building More Homes:

• $1.1 billion over ten years to convert 50% of federal offices into homes.
• Utilizing Canada Post properties for new homes, starting with six properties in Quebec, Alberta, and British Columbia.
• Exploring redevelopment of National Defence properties for military and civilian use.
• $15 billion top-up for Apartment Construction Loan Program to build 30,000 new homes.
• Increase in capital cost allowance rate for apartments from 4% to 10%.

 

Mortgage Changes:

• Initiative to allow renters to report rent payments to credit bureaus for better credit scores.
• Extending mortgage amortizations to 30 years for first-time buyers of newly constructed homes. (Effective August 1^st, 2024)
• Increase in Home Buyers' Plan withdrawal limit from $35,000 to $60,000. (Effective April 16^th, 2024)
• Changes to Canadian Mortgage Charter to benefit mortgage holders during relief measures and renewals.

 

Increases to Capital Gains:

• Proposed increase in taxable portion of capital gains to two-thirds for gains over $250,000.
• Lifetime capital gains exemption increased to $1.25 million, indexed to inflation.
• Estimated revenue of over $19 billion over five years.

 

Many of the proposed changes in the budget have been advocated for by mortgage brokers, lenders, and organizations in Canada for some time now. Mortgage Professionals Canada (MPC) have been dedicated to advocating for the mortgage industry’s best interests and collaborating wit the government to ensure continued efforts in creating a more accessible housing market for all Canadians.

 

One recommendation still revolves around the creation of a permanent housing roundtable; a measure that would bring together all orders of government, industry, and civil society to develop harmonized solutions to the housing supply and affordability crisis. Increasing the value of mortgage insurable homes from $1 million to $1.25 million is also a topic that will require further work. We will also have to see how the increase on taxes on capital gains impacts the market.

 

To read the full Budget 2024, click here.