HOME EQUITY TAX?
- Leslie Vivvian
- May 6
- 1 min read
Have you heard of the Home Equity Tax? They are talking about placing an extra tax on people's homes, including primary residences. Considering the average home in Canada is just over $700K, this tax could affect many people.
Imagine owning your home for decades, watching its value steadily climb, only to be hit with a surprise tax bill, not because you sold it, but simply because it appreciated in value.
That’s the unsettling possibility behind the growing chatter about a so-called "home equity tax" in Canada. While no such tax exists today, the very idea has sparked heated debate, raising questions about fairness, affordability, and the future of homeownership as we know it.
First, what is a home equity tax?
Home equity is the portion of your home that you truly own. It's the difference between your home's market value and what you still owe on your mortgage. For example, if your home is worth $800,000 and you still owe $200,000 on your mortgage, your home equity will be $600,000. As you pay down your loan or your home's value goes up, your equity increases.
A home equity tax, simply put, it's a proposed levy on the increased value of your home, specifically, on your principal residence. The idea is for Government to raise money by taxing wealth accumulation from rising property values. There hasn’t been anything officially published or any laws passed by the current liberal government, but there are some rumblings, particularly as it has become a hot election topic.
Don't be surprised Canada! The Liberals are out for everything they can get their paws on!!
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