The long awaited federal budget has finally been received in the House of Commons.
This comes after Finance Minister Joe Oliver’s unusual announcement in January that his first budget, which would typically be presented in February or March, wouldn’t be delivered until April amid falling world oil prices.
This budget has a lot more to do with politics than spending and budget cuts since the federal election is only months away.
A highlight of the budget is the increase in the allowable TFSA contributions from $5,500 to $10,000, which will be well received by Canadians.
Another highlight is the ability to donate proceeds from your real estate and be exempt from some of the capital gains tax normally charged on investment property. Principal residences already qualified for this exemption. You must sell your real estate to an “arm’s length party” — someone not related to you — then donate the proceeds within 30 days. Any capital gains tax exemption apply to that donation only.
CMHC recently announced that it has increased the insurance premium on their 95% loan to value program. This means that if you buy a home and put down less than 10%, the premium to insure the mortgage increases from 3.15% of the total amount borrowed to 3.6%. This new increase comes into effect 1 June 2015. If you want the lower premium, contact us about buying a home before 31 May 2015.
Contact us today so we can help you get into the home you want while also saving you thousands of dollars.