CREA (Canadian Real Estate Association) works on behalf of the public and its REALTOR® members and is currently advocating three policies to the Federal Government, which could be a positive game changer if approved.
1. Index the Home Buyer’s Plan (HBP):
The Home Buyers’ Plan (HBP) is a federal program that makes getting a first home easier. Under the HBP, anyone can withdraw money from their RRSP up to a maximum of $25,000, to help purchase or build a qualifying first home, either for themselves or a disabled relative.
Each year, the home buyer must pay back to their RRSP a portion of the withdrawn amount with the full amount being repaid within 15 years. Unfortunately, inflation erodes the plan’s buying power, thus reducing the ability of Canadians to afford their first home. This wouldn’t be an issue, however, if the HBP were indexed to the Consumer Price Index (CPI). CREA is looking to index the HBP to the Consumer Price Index (CPI) in $2,500 increments to ensure the HBP continues to help those looking to enter the real estate market now and in the future.
2. Extend the Home Buyer’s Plan (HBP): CREA is looking to amend the HBP to accommodate those in need beyond the current criteria. CREA proposes this benefit should be extended to include those who experience significant life changing circumstances, for example, job relocation, death of a spouse, marital breakdown or decisions to accommodate an elderly family member.computer antivirus software
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3. Delaying Capital Cost Allowance: The 3rd policy aims to increase community reinvestment by removing a major obstacle: the inability of property owners to defer previously written-off depreciation (Capital Cost Allowance). Many investors hold on to property because of tax consequences. CREA wants to change this, and in the process, spur reinvestment in our communities. By encouraging property sales and reinvestments, the proposal would generate more revenue from Capital Gains Tax, GST/HST and income tax from spin-off activity; a win-win for all.
