Effective August 1, 2024, the government will allow 30-year mortgage amortizations for first-time homeowners who purchase newly built homes. For existing mortgage holders who meet specific criteria, “permanent amortization relief” will be available to extend repayment periods for as long as they need to get to the number they can afford to pay monthly. It’s an extension from the 25-year mortgage amortizations previously allowed. However, this isn’t for everyone… there is a significant risk to lifetime wealth creation and must be managed with an eye to interest rates and payment terms to reduce the non-deductible interest costs.
It’s important to file the new Form T1135 – Foreign Income Verification by July 31 this year. The Departments of Finance and CRA have been prolific in their steps to close down tax loopholes and this new form is a cornerstone of these activities.
Due diligence was a big topic at the Audit Defence Bootcamp this past week, as the burden of proof in establishing a due diligence defence rests with any appellant to a CRA challenge.
The Supreme Court of Canada recently held that a partnership’s mandatory retirement policy was not arbitrarily discriminative, as a partner is not an employee.
Effective August 1, new 30-year mortgage amortizations are available for first-time home buyers purchasing newly built homes. Will you recommend this option to your clients? Tell us why in the comments!