Federal Finance Minister Bill Morneau today announced plans to help deal with concerns over housing affordability in cities such as Toronto and Vancouver.
The changes would close loopholes surrounding the capital gains tax exemption on the sale of a principal residents and would bring in mortgage rate stress tests for all insured borrowers. In Toronto, Morneau maintained the housing market remains stable. The steps today are intended to manage the long-term stability of the market to protect the most important investment of Canadians. “We are making sure that Canadians take on mortgages that they can afford. We’re making sure that people have tax fairness, that we have appropriate tax rules to ensure the exemption on principal residences is only applicable to thos who should get it.”
Mornea says today’s measures are about long-term stability in the market.
The changes follow mounting concerns that housing costs in Toronto and Vancouver have become increasingly unaffordable for many.