When you buy a home in Canada, you are only required to make a minimum payment of 5%. There is however one stipulation. If your down payment is less than 20%, you must obtain mortgage default insurance from the Canada Mortgage and Housing Corporation (CMHC).
Like many businesses, real estate agencies have had to adjust their operations in light of recent events. But regardless of everything that is going on around us, buying and selling homes is still top of mind for some Canadians, whether they are looking to downsize to save money, moving cities for better job opportunities or other reasons.
Some Canadians may be considering selling their home but are holding off, hoping that there will be more buyers and chances to maximize profits later in the year.
How to Claim the Principal Residence Exemption When Selling Your Home
The fall can be a great time to sell your home. You will be dealing with serious buyers who want to move before the season changes, and you’ll also have a less saturated market since many sellers list their homes in the spring.
Whether you decide to sell now or later, however, if you are selling your home, you will benefit from the principal residence exemption.
Did you know that snowbirds account for 19% of foreign home purchases in the United States? Or that in 2017, snowbirds purchased over $7 billion USD in real estate?
While it is great that so many Canadians are able to afford property away from Canada, it is important to remember that there are potential tax implications that could come into play as a result of you owning a vacation home in the United States.
Buying your first home is a big step and an expensive one. Luckily, the 2019 Federal Budget proposes a series of tax changes that could help first-time home buyers bear that financial burden more manageably.
The main changes include increases to the RRSP Home Buyer’s Plan withdrawal limits for first-time home buyers and access to a First-Time Home Buyer Incentive.
In our last blog, titled “Spending Time in The United States – Are You Liable to the IRS?”, we spoke of the potential tax implications associated with being a deemed resident of the United States. As a snowbird, however, this is not the only thing you need to consider when it comes to your tax strategy.
Tax Relief for Eligible Moving Expenses – What to Include in Your Calculations
Moving can be stressful and costly, especially when moving long distances. While there are a number of reasons for families and individuals to move to a new location, there are some situation in which tax relief is available for taxpayers to help minimize the costs associated with moving.
With spring on it’s way, many Canadians are getting ready to sell their home. While selling your home can come with many costs, one cost you won’t have to worry about is paying tax on your principal residence.
Unlike most income we earn throughout the year, neither the income earned from the sale of your home or the capital gain will be taxed when you file your annual tax return, so long as that home was your principal residence. Given the growth we have been seeing in the value of homes across Canada, this can be a substantial amount of income in your pocket.