A lot happened during the month of October: Let’s shed some light…these are the changes in a nutshell:

  • Under current regulations, any financial gain from selling your primary residence is tax-free and does not have to be reported as income. As of this tax year, the capital gains tax is still waived, but the sale of the primary residence must be reported at tax time to the CRA.
  • As of October 17, 2016, a stress test used for approving high-ratio mortgages has been applied to all new insured mortgages. The stress test aims to assure the lender that a home buyer could still afford the mortgage if interest rates were to rise.
  • As of November 30, 2016, the new rules restrict insurance for low-ratio mortgages based on new criteria, including that the amortization period must be 25 years or less, the purchase price is less than $1-million, the buyer has a credit score of 600 and the property will be owner-occupied.