Canada will not implement tax on home equity

According to Minister Ahmed Hussen, Canada’s government will not introduce a tax on home equity under today’s administration. Such a statement appears amid increasing calls from experts, and even banks, to consider this option. It also follows the industry’s comment saying they would move to shut down in case this variant is under consideration.

The Minister made it clear it’s not an option, and the government isn’t even considering it. “Our government is not thinking or introducing a home equity tax,” – noted Minister Hussen. “All other suggestions are not true, and we’ve made it clear several times already”.

He added that it will not happen under the current administration. “I will keep saying that, over and over again. We are not considering this variant, and we are not introducing it.” 

The calls for a home equity tax came from people who don’t usually support taxes. Last week, the Globe and Mail’s editorial board called for considering a capital gains tax.

Meanwhile, the national housing industry doesn’t share this idea, saying it would be unfair to homeowners. Last week, TRREB sent an email to agents noting they will shut down such discussions.

However, not only Canada is facing speculation on home equity taxes, as home prices are growing everywhere. Low interest rates (although not as low as in Canada) are also pushing prices in other countries higher. France, New Zealand, and South Korea are just a few of the countries heading towards taxing home equity. The main goal of it is leveling the segment with the help of productive investment, by taking away property tax benefits.