Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

DAN ALBAS --- Home Equity Tax? To be candid I oppose this tax proposal


Recently my email inbox, as well as a significant number of calls to my office have raised significant opposition to a proposed annual home equity tax. The overwhelming feedback on this topic has come somewhat as a surprise to me as this what not a major media story nor have I raised this topic in a weekly report.

Because of the level of responses I have received to this proposed homeowners equity tax will be the focus of this week's report.
First off – what is it?

Recently a Canadian Mortgage and Housing Corporation (CMHC) funded report from a group known as “Generation Squeeze”. This report recommended an annual home equity tax on residences values in excess of $1 million dollars or more.
The proposed tax would be 0.2% for homes with a value between $1 million up to $1.5 million and would increase again to 0.5% up to $2 million and would ultimately increase to 1% on homes valued over $2 million payable annually like income taxes.
What if you could not afford to pay the annual home equity tax?

The program would be designed to defer the balance owing with a rate of interest charged on the outstanding balance. The idea being the balance owing would be paid when the home is sold, or title transferred through an inheritance.
How does this make housing more affordable?

In theory the government would use this tax revenue to invest in affordable housing. The report's author also believes it would create a disincentive for those who invest in housing for a monetary return.
My thoughts?

To be candid I oppose this tax proposal.

As has already been shared with me, there are citizens who now find themselves living in homes with a value in excess of a million dollars and would be subject to such a tax despite not having purchased a “million dollar home”. As these individuals point out, they could never afford to purchase a million-dollar home.

On the surface they can “sell” and cash in on the increase in their home value but as has been pointed out, with the average price of a home in Kelowna now over $1 million, it is pointless as your gains would be wiped out trying to purchase in the current market.

As we have seen large jumps in home values throughout BC in recent years, it would be only a matter of time before more and more households qualify to pay this tax regardless of their household income. It has also been pointed out that selling a million-dollar home in itself negatively can impact your equity as real estate commissions and the BC property purchase tax are much higher on homes with a value in this price range. As one individual shared with my office, they are only a “millionaire” homeowner on paper and could not afford to sell and buy another home at the current market rates as it is all relative.
I have heard other reasons why citizens are opposed to this idea.

One common question is what happens in the event that housing markets decline, having a natural effect on reducing your home equity, when at the same time the home equity tax you owe would continue to increase. There is also a challenge when the value of the home you own does not necessarily accurately reflect your household income and by extension the ability to pay a home equity tax.
From own perspective I don’t believe the Government has a revenue problem that requires a home equity tax. The challenge is spending.

As one example, our current Liberal Government has invested in the Asian Infrastructure Investment Bank. I believe our shares in this bank should be sold and those funds would be better spent investing here in Canada, building Canadian infrastructure.
Final and important point.

The Liberal Government has stated that they will not be implementing this home equity tax.
My question this week:

Do you support the idea of a home equity tax to fund affordable housing?
I can be reached at or call toll free 1-800-665-8711.


Popular posts from this blog

It seems the call for blood donors is being responded to, however ... “This effort is a marathon, not a sprint” says Canadian Blood Services

A week and a half ago I wrote the commentary ... “ While the national inventory is currently strong, an increase in blood donor cancellations is a warning sign of potential challenges to maintaining a health inventory of blood ” It was written as a result of talk about a potential blood shortage that would occur if people stopped donating due to the COVID-19 virus. It seems the call to Canadians was responded to, however, as I was told this afternoon ... “ T his effort is a marathon, not a sprint ”. As it now stands now, donors are able to attend clinics which are held in Vancouver (2), Victoria, Surrey, and in Kelowna, so I asked if there any plans to re-establish traveling clinics to others communities - for example in Kamloops, Prince George, Prince Rupert, Revelstoke or Cranbrook, and perhaps further north at perhaps Ft. St. John? According to Communications Lead Regional Public Affairs Specialist Marcelo Dominguez, Canadian Blood Services is still on

FEDLSTED -- Rules will have to relax-- the question is how and when

The media has created a fervour over the mathematical models that allegedly help governments predict the future of Coronavirus infections in the general population. Mathematical modelling has limited use and value. We need to understand is that the data available on Coronavirus (COVID-19) infections in Canada is far too small for statistical reliability. The data available for the whole world is useless due to variables in how nations responded to Coronavirus infections. There is no commonality in steps taken to combat virus spread and no similarity in the age demographics of world nations, so the numbers you see on the daily tracking of world infections are not useful in developing a model of infection rates that can be relied on. Mathematical models of the future spread of Coronavirus are better than nothing, but not a whole lot better.  Mathematical models must include assumptions on virus spreads, and various factors involved. As they are used in projections, a small erro

AARON GUNN -- He is, at his core, an ideologue, meaning the facts of any particular issue don’t actually matter

Ben Isitt - City Councillor and Regional Director Victoria City Council and its resident-genius Ben Isitt is back with another dumb idea. Introducing a motion to ban the horse-drawn carriages that have coloured Victoria’s downtown streets for decades, calling them “an outdated mode of transportation”. Are you serious?   No one is actually commuting by horse and carriage. They are here for tourists and residents alike to interact with world-class animals and discover the magic and history of our provincial capital. It’s part of what gives Victoria its charm. And the truth is these horses are treated better than anywhere else in the world. They probably live better lives than many British Columbians.   And talk to anyone who works with these horses and they’ll all tell you the exact same thing: this is what the horses love to do. This is what they were bred for and trained for. This is what gives their lives purpose and meaning. But maybe we shouldn’t be su


Show more