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As recent month to month inflation rates for Canada continue to remain above 5%, with some months as high as 8% (in the year of 2022), the Bank of Canada continues to warn Canadians of further interest rate hikes even after the multiple interest rate increases we have experienced this year. If you are in the process of obtaining a new mortgage, whether you are refinancing or purchasing a property, higher interest rates mean increased monthly mortgage payments and decreased affordability. However, what happens if you have an existing mortgage and the Bank of Canada and prime rates increase?

For those who have already gone through the process of purchasing a new construction home and purchasing a resale home, you know that the purchasing experience is surely not the same. It can be especially daunting as more homebuyers are dealing directly with a builder’s (seller’s) representative when purchasing compared to resale transactions which more than not have a realtor representing and guiding you throughout the process.

To combat the sharp rise in real estate prices, the Canadian government has proposed new GST/HST rules in relation to Assignments (effective May 7, 2022) and Income Tax rules in relation to flipping real estate in general (effective January 1, 2023).