What the Federal Budget Means for Your Finances

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Personal finance highlights from the 2022 Federal Budget

Yesterday, the federal government released its 2022 budget – titled A Plan to Grow Our Economy and Make Life More Affordable.

While the Canadian economy and employment levels have returned to pre-pandemic levels, consumer confidence is below historical averages due to ongoing concerns about inflation.

So how will the budget impact your financial plan? Here are a few items that you may want to discuss with your financial advisor.


Real Estate

real estate

First-time home buyers:

  • Tax-Free First Home Savings Account, effective 2023, would enable first-time home buyers to save up to $40,000 towards their purchase. Contributions would be tax-deductible (like an RRSP), while withdrawals including investment income would be non-taxable (like a TFSA). 
  • First-Time Home Buyers' Tax Credit amount doubled to $10,000, applicable to homes purchased on or after January 1, 2022. 
  • Rent-to-Own Projects will receive dedicated support through the Affordable Housing Innovation Fund. 

Home renovations:

  • Home Accessibility Tax Credit amount (for accessibility renovations or alterations) doubled to $20,000 for the 2022 and subsequent tax years.
  • Multigenerational Home Renovation Tax Credit (up to $7,500), supporting a secondary suite for a senior or adult with a disability, starting in 2023.




  • Selling a property that's been owned for less than 12 months would trigger full taxation on the profits as business income (effective for properties sold on or after January 1, 2023).
  • Exemptions include having to sell due to death, disability, divorce, new job, or birth of a child.

Restrictions on foreign buyers:

  • Foreign businesses and people who are not Canadian citizens or permanent residents would be prohibited from buying non-recreational, residential properties in Canada for two years.
  • Exemptions include international students on the path to permanent residency in certain circumstances as well as individuals with work permits residing in Canada.

 Reducing veteran homelessness:

  • Budget 2021 included $45 million for a pilot program
  • Budget 2022 proposes $62.2 million over three years, beginning in 2024-25, for a new program to provide services and rent supplements 

Canadian Families


Dental care:

  • Dental care for families with combined annual income of less than $90,000 
    • 2022: Under 12 years-old
    • 2023: Under 18-years-old, seniors and those living with a disability
    • 2025: Everyone else
  • No co-pay for families with annual income less than $70,000


Child care:

  • Early Learning and Child Care Infrastructure Fund, funding over four years beginning in 2023-24, to enable provinces and territories to make additional child care investments, such as the building of new facilities


  • Immigration Levels Plan,
    • helps reunite family members, grants permanent status to temporary residents (including essential workers and international students)
    • higher annual permanent resident targets, majority of whom will be skilled workers, addressing persistent labour shortages
    • includes global humanitarian commitments, such as Afghan and Ukrainian refugees
  • Additional funding to facilitate entry of a growing number of visitors, workers, and students 




  • Currently, small businesses benefit from a reduced federal tax rate of 9% on the first $500,000 of taxable income (compared to the general federal corporate tax rate of 15%). Phased out once its capital employed in Canada hits $15 million, which can discourage growth.
  • Proposed phase out level increase to $50 million in taxable capital, applicable to taxation years beginning on or after yesterday.


  • National Trade Corridors Fund will receive additional funding over the next five years to support supply chain projects focused on the movement of goods across Canada.
  • Strengthening Canada's Trade Remedy and Revenue Systems. Includes introducing amendments to implement electronic payments and clarify importer responsibility for duties and taxes, as well as amendments to better ensure unfairly traded goods are subject to duties.


Employers/ Employees:

  • Employee Ownership Trusts created to support employee ownership and facilitate the transition of privately owned businesses to employees.
  • Temporary Foreign Worker Program:
    • Trusted Employer model to reduce red tape for access to the program
    • New streamlined program for agricultural and fish processing employers
  • Labour Mobility Deduction for eligible tradespersons and apprentices, which would recognize up to $4,000/year in eligible travel and temporary relocation expenses
  • Union Training and Innovation Program funding doubled over the next four years to help apprentices from underrepresented groups
  • Funding to help workers navigate the changing labour market including providing support to employers to re-train their workers
  • Foreign Credential Recognition Program to receive additional funding to reduce barriers and help internationally trained health care professionals 
  • Opportunities Fund to help increase participation in the workforce by persons with disabilities and make workplaces more inclusive and accessible.

Climate and Clean Technologies


Zero-Emission Vehicles:

  • On-road transportation accounts for 20 per cent of Canada’s greenhouse gas emissions.
  •  Incentives for Zero-Emission Vehicles (iZEV) program funding extended until March 2025. Eligibility under the program will also be broadened to support the purchase of more vehicle models, including more vans, trucks, and SUVs.
  • Medium- and heavy-duty ZEVs 
    • Purchase incentive program introduced to help businesses upgrade their fleets. 
    • In addition, Green Freight Program to help decarbonize vehicles already on the road
    • Transport Canada to work with provinces and territories to develop and harmonize regulations and to conduct safety testing for long-haul zero-emission trucks
  • Electric vehicle charging stations - funding to build a national network:
    • large-scale urban and commercial ZEV charging and refuelling infrastructure funding from the Canada Infrastructure Bank
    • ZEV charging infrastructure in sub-urban and remote communities through the Zero-Emission Vehicle Infrastructure Program (ZEVIP)


Clean electricity:

  • Smart Renewables and Electrification Pathways Program funding to support additional renewable electricity and grid modernization projects.
  • Additional funding to support pre-development activities of clean electricity projects of national significance, such as inter-provincial electricity transmission projects and small modular reactors.

Greener buildings and homes:

  • Buildings and homes are the third-largest source of greenhouse gas emissions in Canada, accounting for approximately 12% of Canada’s emissions.
  • Canada Green Buildings Strategy to include building code reform, initiatives to promote the use of lower carbon construction materials and to increase the climate resilience of existing buildings.
  • Deep Retrofit Accelerator Initiative funding to provide support for retrofit audits including project management for large projects with a focus on low-income affordable housing.
  • Greener Construction in Housing and Buildings - funding for research and development on innovative construction materials and to revitalize national housing and building standards to encourage low-carbon construction solutions.
  • Greener Neighbourhoods Pilot Program in up to six community housing neighbourhoods
  • Greener Affordable Housing funding for low-interest loans and grants to low- income housing providers as part of the low-income stream of the Canada Greener Homes Loan program

To find out more, read the 2022 Federal Budget highlights and to understand how these may impact your finances, contact your financial advisor.


Source: Budget 2022 A Plan to Grow Our Economy and Make Life More Affordable. https://budget.gc.ca/2022/home-accueil-en.html
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The commentaries contained herein are provided as a general source of information based on informmation available as of April 7, 2022 and are not intended to be comprehensive investment advice applicable to the circumstances of the individual. Every effort has been made to ensure accuracy in these commentaries at the time of publication, however, accuracy cannot be guaranteed. Market conditions may change and AGF Investments accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained here.
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April 8, 2022
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