The federal budget was announced on April 16th and we have some highlights that will affect the real estate market:
FIRST TIME BUYERS – effective August 1st, these lucky people will be able to take up to a 30 year amortization on their mortgage when purchasing a new property (new build) with less than 20% down payment. Up until now, the max amortization was 25 years for insured mortgages so this new feature will reduce the buyer’s monthly payment. The purchase price must be under $1MM and it must be a principal residence.
CAPITAL GAINS TAX – effective June 24, 2024, these unlucky people will have to pay a higher capital gains tax for amounts claimed per individual over $250,000 per year. Here are the details: