Canada’s New Capital Gains Tax Rules and Mortgages

Next pressing issue after 25% tariffs is the Canadian Federal Government’s decision to delay the implementation of its new capital gains tax rules until 2026.

In the 2024 budget Ottawa was set to increase the capital gains inclusion rate – the portion of gains that is taxable – from 50% to 66.7% for individuals earning over $250,000 in annual capital gains, as well as for corporations and most types of trusts.

• That plan has now been pushed back to January 1, 2026. 
• For average Canadians this would mainly affect those selling a second residence, such as a cottage.
• The delay could see some properties come onto the market with owners hoping to take advantage of the tax saving.

The government caused panic-selling of Cottage Country Cabins in Ontario, and has now paused the capital gains tax.

We hope this pause will allow a normal sales cycle to take place.

Mortgage Mark Herman, Calgary Alberta mortgage broker near me