Time is Running Out for First-Time Home Buyers to Save in 2024

Owning a home, once almost considered a right of Canadian citizenship, has become a more distant dream for millions. The high cost of housing, coupled with a desperate shortage of supply, has turned the notion of home ownership into a near impossibility for many Canadians and those who have arrived in our country more recently.  The Tax-Free First Home Savings Account (FHSA) can help but it’s important to open an account before December 31, 2024 to create and preserve the contribution room.

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.  

Did you know there are several options for claiming charitable donations in the year of death that can help to offset expensive tax on the terminal returns?  Here is a run-down of six of them.

Tax and financial professionals who answered our July poll question had a majority agreement that it is fair that the CRA started to issue legal warnings beginning in July to recover the more than $9 billion of overpaid pandemic recovery benefits like CERB. The consensus is that Canadians need to pay back the money if they weren’t entitled to it. At the same time, many comments pointed to the need for CRA accountability in the roll-out and administration of these programs. Thanks to those who participated – check out the comments below:

Canadians’ relationship with the CRA’s enlarged department has changed substantially, along with the digital environment it operates under.  Add to this a barrage of new tax measures and new powers bestowed on CRA, and it spells Audit Risk.  Tax audit defence is now a key component of every professional’s duty to their clients, including financial professionals, who find themselves answering more tax planning questions as tax accountants focus on tax compliance.  Come up to speed quickly in the comprehensive CE session at the September 18 CE Savvy Summit Virtual Event, as Canadian best-selling tax author and educator, Evelyn Jacks overviews recent new tax measures for:

Ever listened to Canadians on a beach in a far off land thinking about how they can continue to fund their expenses in Canada and abroad? Will they have to sell the home, the cottage or the condo in Mexico to make ends meet? Worse, will new capital gains taxes compound their cash flow problems if they do? These real life decisions would be made so much easier if their financial portfolios could provide a safe haven to cover such unexpected new risks. Join Douglas V. Nelson as he discusses these topics in a session sponsored by BCV Asset Management entitled Managing Retirement Fear Factors at the 2024 Acuity Conference for Distinguished Advisors November 10-12 in Montreal.

Especially for experienced financial services professionals!  Earn a new Certificate in Lifecycle Transitions Planning. Choose 15 from a selection of 80 micro courses with one important focus:  to help you engage more effectively in tax-efficient wealth management conversations during this period of significant – and potentially expensive – tax change in Canada. Customize your CE and your business education to scale your business to the next level of growth.  Why are CE Savvy™ Micro-Course Collections the educational choice of savvy professionals?  Check it out: