New 30-Year Amortizations for Insured Mortgages

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.  

Currently the Income Tax Act (the Act) ensures disclosure of taxpayer information by Canada Revenue Agency (CRA) officials is specifically prohibited unless in relation to a criminal investigation or in emergency circumstances.

A recent decision of the British Columbia Supreme Court has held that the Canada Revenue Agency (CRA) owes taxpayers a duty of care; this new finding means that taxpayers can now sue the CRA for negligence. 

Discovery: the process of requesting and receiving relevant documents from the other side is one of the most important stages of any litigation. When the other party is the Minister of National Revenue (the Minister) the discovery stage can seem like a David vs. Goliath type struggle.

Lots of great material has been released lately about global and Canadian wealth trends. Three works come to mind as must-reads...

Steve currently makes $84,000 in his small unincorporated business in BC; he wants to pay his new wife Carin half this amount, as they work together in the business. How much will the family save on taxes if they split income?

Either parent may claim the costs of adopting a child or they may split the costs as long as no more than the actual amount spent is claimed.