Private client services
Extended eligibility for federal Home Buyers’ Plan (HBP)
Under this federal housing program, amounts withdrawn from a registered retirement savings plan (RRSP) to buy or build a home must start being repaid to an RRSP starting in the second year after withdrawal.
Budget 2024 included a temporary measure that allowed homeowners to start repaying five years after withdrawal to further assist those purchasing their first home.
The 2026 spring economic update proposed extending the five-year grace period, making it available to those making a first withdrawal up to the end of 2028.
Amending Canada’s employee ownership trust tax exemption
Canada’s employee ownership trust tax exemption exempts up to $10 million in capital gains realized on the eligible sale of a business by an individual to an employee ownership trust or worker co-operative corporation.
While this measure was originally set to expire at the end of 2026, the Economic Update proposed making the capital gains tax exemption permanent.
Streamlining disability tax credit (DTC) accessibility
To improve the DTC application process, the Economic Update proposed streamlining applications for individuals with certain medical conditions.
Under this proposal, a qualified medical practitioner would no longer be required to provide detailed information on an individual’s impairment and daily living impact to certify individuals with at least one listed medical condition.
For any medical condition not listed, a qualified practitioner would still need to certify DTC eligibility unless the individual is under care of a public guardian or equivalent. In this case, a public guardian can certify on the DTC application that the individual has a valid certificate of incapacity or an equivalent form.
The Economic Update also proposed expanding the types of conditions that can be certified by occupational therapists, physiotherapists, speech-language pathologists and podiatrists. These measures would apply to DTC certifications issued for 2026 and subsequent years.
Employment-related measures
The Economic Update includes several employment-related initiatives to support youth employment and Canada’s workforce:
- Labour mobility deductions: Beginning in the 2026 taxation year, the annual deduction limit will increase from $4,000 to $10,000 (with indexation) and the distance threshold will lower from 150 kilometres to 120 kilometres to allow eligible tradespeople and apprentices in the construction industry to deduct temporary relocation expenses.
- Apprenticeship training grant: For apprentices, a $400 weekly income top-up will be provided during in-class technical training—up to $16,000 per apprentice, paid in addition to employment insurance (EI). A $5,000 bonus will also be available for those completing certification in Red Seal trades such as a machinist, welder or electrician.
- EI for seasonal workers: Five additional weeks of EI benefits—up to a maximum of 45 weeks—will be extended to eligible seasonal workers up until October 2028.
