Blog > Ontario's Latest Housing Policies
Michael John Lau · REALTOR® & CPA/CMA · Seller Insights · 2026
Ontario's Latest Housing Policies
Capital gains changes, renovation rules, and legal updates: What every Markham seller needs to know before listing in 2026.
Navigating a Changing Regulatory Environment
Selling a home in Markham is no longer just about staging and pricing. Recent shifts in Ontario and federal housing policies have introduced new layers of complexity for sellers. While the core goal remains the same—maximizing your net proceeds—the path to get there requires a clearer understanding of the rules.
As a REALTOR® & CPA/CMA, my role is to ensure you are fully informed so you can make strategic decisions alongside your legal and tax professionals. Here are the key policy areas impacting Markham sellers right now.
3 Policies Impacting Your Sale
- 1. The Principal Residence Exemption (PRE) Still Protects You. Despite recent federal capital gains inclusion rate changes, the PRE remains intact. If the property was your principal residence for every year you owned it, your capital gain is generally fully exempt from tax. However, if you rented out a portion of the home or used it for business, the rules become complex and require an accountant's review.
- 2. Renovation and "Flipping" Rules. The federal residential property flipping rule (requiring a minimum 12-month ownership period to avoid taxation on gains) primarily targets investors, but sellers who have owned their Markham home for less than a year due to unforeseen life events (job relocation, divorce, health) should be aware of the specific exemptions available.
- 3. Transparency in Transactions. Ontario continues to tighten rules around transparency in real estate transactions, including stricter disclosure requirements for latent defects and the history of the property. Full, honest disclosure from day one is not just ethical; it is your best legal protection.
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Book a Seller ConsultationMichael John Lau is a licensed REALTOR® & CPA/CMA with the Kaizen Real Estate Team at eXp Realty (License #4784577). This article provides general information only and does not constitute legal, tax, or financial advice. Always consult a qualified tax professional or lawyer regarding your specific circumstances and the latest CRA/provincial regulations.