Home buyers penalized by outdated taxation system



    Canadian Association of Accredited Mortgage Professionals urges
    Government to index tax thresholds

    NEED A 

SOURCE? TORONTO, Jan. 3 /CNW/ - Housing affordability in Canada has been incrementally reduced because applicable tax thresholds remain stagnant, according to a recent report by the Canadian Association of Accredited Mortgage Professionals (CAAMP). The report, "The Perils of Non-Indexation - Three Tax Issues Affecting Canadian Housing Markets", focuses on three taxation issues: 1. GST new homes rebate --------------------- a. Has not been altered since the GST was introduced in 1991 b. GST paid per new home increased by 95 per cent from 1991 to 2007. With the reduction in GST to 5 per cent, GST per dwelling unit that might be payable is still 67 per cent higher than in 1991 2. Home Buyers' Plan (HBP) ----------------------- a. The average house price in Canada has doubled since HBP was introduced in 1992. Yet, the maximum amount that can be withdrawn from RRSPs ($20,000 per individual, $40,000 per couple) has not been increased b. For couples making the maximum withdrawal, the required amount of other finance has increased by 161 per cent since 1992 3. Land transfer taxes (LTT) ------------------------- a. In Québec, Ontario, Manitoba and British Columbia, LTT payable increased more rapidly than house prices during 1997 to 2007 (136 per cent, 113 per cent, 358 per cent and 179 per cent respectively) CAAMP President and CEO Jim Murphy and Chief Economist Will Dunning are available to discuss the implications of the non-indexation of taxes related to purchasing a home in Canada. They can also discuss regional trends and statistics. For a copy of the report, please visit www.caamp.org.

For further information:

For further information: To arrange an interview, please contact: Renée
Mellow, Myra Reisler, (416) 504-8464, renee@mediaprofile.com,
myra@mediaprofile.com

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Canadian Association of Accredited Mortgage Professionals

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