Home Equity Theft Tax Calculator
Prime Minister Trudeau said he wouldn't add another tax on your principal residence as recently as Dec. 19, 2021. So did former Finance Minister Bill Morneau. Former CMHC CEO Siddall insisted on Twitter multiple times that he WASN’T funding research into a new housing tax, first reported by an accredited media outlet, Blacklocks.ca. (See former CHMC CEO Evan Siddall tweet below).
However, CMHC in fact paid a UBC Professor Paul Kershaw $250,000 to do just that in their “research" released Jan. 5, 2022. Punitive, additional, annual taxes are being proposed on Canadians’ principal residences valued over $1M. This is on top of existing annual property taxes and the BC wealth tax called "Additional School Tax".
So who’s lying to you? This tax would HIT THE AVERAGE HOMEOWNER IN VANCOUVER, GREATER TORONTO as well as cities like Montreal, Victoria, Nanaimo, Whistler, Langley, Richmond, Surrey, Coquitlam, Maple Ridge, Port Coquitlam, Vaughan, Markham, Brampton, Oakville, Milton, Burlington, Hamilton and more. Modest homes, like duplexes and townhomes as well as aging single family homes would pay, not just mansions. While residents in more rural areas of Canada won't be impacted right now, don't be surprised when the tax threshold is eventually lowered.
Ninety-one per cent of single-family homes in Vancouver were valued at over $1M in 2017. A Fraser Valley detached home’s average price is now $1.6M with Greater Vancouver suburb benchmark homes (including condos) at $1.23M. The average Toronto home is now $1.1M and climbing.
FEDERAL HOME EQUITY TAX CALCULATOR
Using our federal Home Equity Theft Tax Calculator you can enter your home value to see how much extra tax you'll be expected to pay per year (plus interest if you defer). (Our excel calculator can be downloaded and opened with Numbers (Mac) or Google sheets (free Excel alternative).
All the additional taxes on housing over the last five years have failed to solve any affordability issues. BC already has an additional "school" tax on homes valued over $3M which just goes to general revenue. These taxes will just grow the bureaucracy and add to the cost of government. Homeowners subject to the tax will likely just add the cost to the sale price or not sell their home, reducing choice and supply for home buyers.
This tax also steals from YOUR retirement fund, inheritance plans, future care home costs and more. If you're already paying a mortgage or line of credit on your home, you may not be able to even defer taxes, which forces you to sell your home. A vulnerable senior was recently taxed out of her home as the city foreclosed.
A quick calculation shows that in ten years, a Toronto townhome paying $2,940 per year for that new surtax, plus interest if deferred, could be on the hook for a nearly $40,000 extra tax bill, assuming the value of your home doesn't increase. As the home increases in value, the tax would be even higher! The "surtax" chart, taken from the research, is provided.
Worth mentioning is that the UBC professor who authored this tax proposal, admits he lives on a Pitt Meadows farm, (and may even pay a much lower Agricultural Land Reserve tax than the typical annual property taxes homeowners already pay!)
NO HOUSING SOLUTIONS, JUST TAX
Instead of applying real solutions like enabling more homes of all kinds for all budgets to be built or incentivizing rent-to-own options for renters, governments:
- add more building regulations that make housing more costly
- keep interest rates low so they can print more money to spend which also fuels more real estate purchasing
- create even more taxes to grow government as they increase immigration to unheard-of levels of 400,000 per year.
They have no plan to house all these new residents in our cities.
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