Capital Gains Tax Changes: What Mortgage Brokers Need to Know
How Proposed Tax Changes Could Impact Your Business and Clients
In June 2024, the Canadian federal government proposed increasing the capital gains inclusion rate, which would make a larger portion of profits from selling investment properties taxable. However, with Prime Minister Justin Trudeau’s resignation and the proposal left incomplete, these changes are now in limbo.
Despite the uncertainty, the Canada Revenue Agency (CRA) has announced it will begin collecting taxes based on the proposed higher inclusion rate until the new government makes a decision. If the changes aren’t implemented, the CRA will reimburse overpayments—but for now, sellers could still face higher taxes.
As a mortgage broker or brokerage owner, it’s crucial to understand how this uncertainty affects your clients—especially property investors—and how you can help them navigate their options. This is also an opportunity to position your brokerage as a trusted resource for clients seeking solutions.
At Haystax Mortgage, we empower brokers and franchise owners to grow their business by offering innovative solutions tailored to their clients’ financial needs. Helping clients understand how to access equity without selling aligns perfectly with that mission.
For mortgage brokers across Canada, 2024 was a year that pushed the limits. With rising interest rates, stricter FINTRAC compliance measures, reduced commissions, and more complex deals, the market left many professionals working harder for smaller returns. As we step into 2025, the Canadian mortgage industry is ripe with potential for those ready to adapt and grow.
At Haystax Mortgage, we’re here to help you seize that potential. Whether you’re considering how to start a mortgage brokerage or exploring franchises for sale in Canada, Haystax offers the tools, resources, and support to help you succeed in an evolving market.
Why This Matters for Mortgage Brokers
Your clients—especially real estate investors—are now facing difficult decisions about whether to sell their properties or hold onto them. With higher taxes looming, many are looking for smarter ways to access cash without triggering capital gains taxes.
This is where brokers can add value by offering creative financing solutions and educating clients on how to leverage their property equity to meet their financial goals.
Financing Strategies Brokers Can Offer Clients
1. Refinancing Existing Mortgages
Help clients access tax-free cash by refinancing their properties. Refinancing allows investors to tap into their growing equity while keeping their assets intact, protecting them from potential tax burdens.
2. Home Equity Line of Credit (HELOC)
Offer clients a HELOC for flexible, interest-only access to funds without needing to sell. This is ideal for property investors looking to reinvest or manage short-term cash flow.
3. Interest-Only and No-Payment Mortgages
For clients needing temporary relief, products like interest-only and no-payment mortgages provide breathing room without forcing them to liquidate investments.
4. Private and Alternative Lending Solutions
For clients who may not qualify for traditional refinancing, private lenders and alternative mortgage products offer flexible options to access cash quickly.
Selling vs. Refinancing: Helping Clients Make Smarter Decisions
How Haystax Mortgage Helps Brokers Grow
At Haystax Mortgage, we provide mortgage brokers and franchise owners with the tools and resources to grow their businesses. This includes access to innovative lending solutions that help clients navigate financial challenges like the current capital gains tax uncertainty.
Why Brokers Choose Haystax:
Broker in a Box: Complete business support to simplify operations and grow your brokerage.
Low Per-Agent Head Fee: Keep more of your revenue while scaling your business.
Franchise Association Corporation (FAC): Have a say in corporate decisions and shape the future of the industry.
Access to Diverse Lending Products: Offer clients refinancing, HELOCs, private lending, and more.
By offering creative financing strategies, you can position yourself as a trusted advisor and grow your client base.
Let’s Talk About Growing Your Brokerage
Now is the time for brokers to step up and guide clients through this uncertain financial landscape. At Haystax Mortgage, we’re here to help you grow your brokerage with innovative tools, industry expertise, and financing solutions that meet your clients’ needs.
📞 Call Haystax Mortgage at 778-653-5828
🌐 Visit us at haystax.ca
Let’s build your business while helping clients protect their investments.
