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Canada first implemented a tax on capital gains in 1972, the year the country’s tax laws were overhauled. But the profits from selling a primary residence have never been subject to the tax. Canada remains one of the only countries in the world that doesn’t tax homeowners on the proceeds of selling their main homes.
So, a Canadian family who has called the same house home for 30 years can sell it and reap the full benefits of three decades’ worth of appreciation.
Considering the rapid escalation of prices in the country over just the last eight months, anyone who has held on to a home for a period of years can sell it for a healthy, if not colossal, profit and not give up any of that to taxes.
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The path to homeownership in Canada is getting even steeper.
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Try refreshing your browser, or Canadians face a tougher stress test to get a mortgage. Should you worry? Back to video
Regulators plan to rachet up the country’s dreaded “stress test” qualifying rate for mortgage borrowers. As of June 1, loan applicants regardless of the mortgage rate they’ve been offered by their lender will need to prove they can afford an interest rate of 5.25 per cent before getting approved for funding.