News & Events

CAOR Responds to Home Equity Tax Proposal

By | News & Events

Home ownership is expensive and is slipping further out of reach for too many Canadians. Located within the Regional Municipality of Waterloo, Cambridge’s real estate market has increased dramatically over the last two years with the average cost of a residential property surpassing the $1 million mark in February 2022.

A report backed by Canada’s national housing agency released at the beginning of the year, aimed to tackle the existing housing crisis by calling for a home equity tax on houses valued at $1 million and more. A tax that would range from 0.2% for homes valued between $1 million to $1.5 million, and up to 1% on homes valued over $2 million, which would be calculated annually with the option of paying it each year or deferred until the sale of the home. Akin to a capital gains tax, this would affect seniors and middle-class families who have played by the rules and are relying on their homes as a financial nest egg for retirement or as a down payment for a bigger home if choosing to upsize as their families continue to grow throughout various life stages.

According to the report, such a tax would impact about 10% of Canadian homes and raise between $4.54 and $5.83 billion for government coffers, which the author says could be used to provide benefits to renters, such as “portable housing benefits” or investments in new green co-op and purpose-built rental units.

OREA CEO, Tim Hudak, published a statement in response to the proposed home equity tax and stated the following: “The Government of Canada should distance itself from this report and state that they have no interest in a new tax on home equity. It should also direct the CMHC to stick to its core mandate, focus on increasing housing supply and choice, and refrain from this kind of political activism.” Hudak then stated, “A new tax on homes will add yet another barrier to Canadians putting their home up for sale, further restricting housing supply.”

The Canadian Taxpayers Federation also criticized the report, arguing that higher taxes could have the opposite effect in addressing home prices. “They’ve got it backwards. Higher taxes won’t make homes less expensive, higher taxes make everything more expensive,” the group said.

So far in 2022, Cambridge’s average price of a residential property costs nearly $1 million. Cambridge is currently in an extremely hot real estate market due to its thriving economy and prime location along the Toronto-Waterloo transit corridor, therefore, the report’s claim that their proposal would only apply to the top 10% most valuable homes in Canada is vastly underestimated when referring to our local residents. Additionally, a home equity tax will likely disincentivize existing homeowners and older generations from selling their homes and thus stay in their homes for even longer and further restrict housing supply for newer generations and those looking to enter the real estate market.

If there’s a housing problem, then we need to build more homes and governments should be reducing the red tape and fees to build such homes.  We are not going to tax our way into increasing real estate supply.

CAOR Receives the 2020 Outstanding PAC Award for Small Boards!

By | News & Events

(1) John Teixeira (Chair), RE/MAX Real Estate Centre Inc., Brokerage (2) Majed Darr, RE/MAX Real Estate Centre Inc., Brokerage (3) Sardool Bhogal, Homewood Real Estate Inc., Brokerage  (4) Ellie Davila, CAOR staff  (5) Michelle Wobst, RE/MAX Real Estate Centre Inc., Brokerage  (6) Philippe Fonseca, RE/MAX Real Estate Centre Inc., Brokerage  (7) Rick Lewis, RE/MAX Twin City Realty Inc., Brokerage

We are delighted to announce that the Cambridge Association of REALTORS® (CAOR) has been awarded the 2020 Outstanding Political Action Committee (PAC) Award for small boards! This award was presented by the Canadian Real Estate Association (CREA) Chair, Costa Poulopoulos, at their annual PAC Days conference on October 5th , 2020 in recognition of our volunteer initiatives and enterprise in advancing REALTOR® issues at the federal level throughout the year.

Over the past year, CAOR has worked closely with CREA to advocate on behalf of our REALTOR® Members with local MPs on a variety of topics including but not limited to: reviewing the mortgage stress test, increasing the Home Buyer’s Tax Credit, and placing conditions on federal infrastructure funding to encourage the creation of new housing supply.

All Canadian real estate Boards or Associations are eligible for the Outstanding PAC Award which is divided into two categories: small boards (less than 750 Members) and large boards (750 Members or more). CAOR has won the category of small boards across Canada alongside our neighbours, the London and St. Thomas Association of REALTORS® (LSTAR) recognized as the winner for large boards. A scoring guide is used to evaluate the level of involvement by boards and associations. The award is presented to the top board or association who receives the highest rankings in their respective categories based on PAC Days participation, promotion of federal advocacy and reports that support the federal PAC agenda, constituency visits, and federal election activities.

The CAOR government relations committee plays a critical role in advocacy efforts and promoting CAOR at all levels of government. The committee implements OREA and CREA strategies for legislative manners while liaising with MPs, MPPs, and city officials. CAOR would like to thank the 2019/2020 government relations committee for their hard work, commitment, and for bringing the Outstanding PAC Award for small boards home!

Thank You to our 2019/2020 CAOR Government Relations Committee Members:

John Teixeira (Chair), RE/MAX Real Estate Centre Inc., Brokerage

Sardool Bhogal, Homewood Real Estate Inc., Brokerage

Majed Darr, RE/MAX Real Estate Centre Inc., Brokerage

Philippe Fonseca, RE/MAX Real Estate Centre Inc., Brokerage

Rick Lewis, RE/MAX Twin City Realty Inc., Brokerage

Michelle Wobst, RE/MAX Real Estate Centre Inc., Brokerage

Ellie Davila, CAOR staff