Liberals say claims they would introduce home equity tax are 'false'
Pierre Poilievre says a Conservative government would never impose a tax on home equity, warning that the Liberals could consider it to fund spending plans, claims the Liberals strongly deny.
Speaking to members of the Canadian Association of Retired Persons (CARP) in Toronto on Monday, Poilievre responded directly to a question on whether his government would ever tax equity Canadians have built up in their homes.
“We will never allow a tax on home equity. Period. Full stop. Not going to happen," Poilievre said.
Under current Canadian tax law, homeowners are exempt from paying capital gains tax on the sale of a primary residence, allowing them to keep the full proceeds. This exemption is a key element in many Canadians’ retirement strategies, particularly for older adults who plan to downsize.
Poilievre claimed, without providing evidence, that the Liberal Party would consider removing this exemption to fund new spending plans. He pointed to Liberal Leader Mark Carney’s platform, released over the weekend, as the reason for his concern.
“What happens when the finance officials tap them on the shoulder and says, ‘You’re out of money, you need to go find more?' Well, they’re going to go out and they’re going to tax your home equity. They’re going to go after your house," he said.
“Bottom line is, Liberals will tax your home equity if you give them the chance in this election. We will never let that happen. Your home belongs to you, and when you sell, you should keep every single penny for yourself and your kids.”
The Liberal campaign denied any plans to introduce such a tax. In a media statement, Liberal spokesperson Mohammad Hussain said:
“This is entirely false. This is another desperate attack from the Conservatives. They do this every election.”
Previous Conservative leaders Erin O’Toole and Andrew Scheer made similar claims in the past two election cycles, warning voters that the Liberals would target home equity for taxation, accusations the Liberals have consistently denied.
The debate over home equity taxation comes amid a noticeable uptick in homeowners leveraging their properties for credit.
According to Statistics Canada, HELOC (Home Equity Line of Credit) balances rose to $170.8 billion as of September 2024, up 3% year-over-year. While HELOCs account for just 7.8% of the country’s $2.2 trillion residential mortgage debt, the recent increase marks a renewed interest in tapping home equity after declines throughout 2022 and early 2023.
Read more: Exploring home equity options: reverse mortgage or HELOC
Despite the political back-and-forth, no formal proposal to tax capital gains from home sales exists in the current Liberal platform.
Earlier Monday, Poilievre also made headlines in Scarborough, promising that the Conservative Party’s costed platform would be released Tuesday just after advance voting wrapped up. The Liberals and NDP unveiled their platforms on Saturday.
As part of his broader housing strategy, Poilievre pledged to build 2.3 million homes over the next five years and proposed tying federal infrastructure funding to municipalities’ housing approval rates. Cities that approve 15% more housing annually would receive full funding, while those that fall short would see reduced federal contributions.
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