Short answer
The HATC currently allows up to $20,000 of eligible annual expenses for a qualifying individual or dwelling. Budget 2025 proposed that, for 2026 onward, the same expense could no longer be claimed under both HATC and the Medical Expense Tax Credit.
The homeowner’s practical concern
A homeowner finances accessibility work assuming two tax credits will both apply to the same invoice, even though the proposed rule would prevent that duplication.
What the official rule says
CRA’s Budget 2025 page labels the no-double-claim measure as proposed. CRA’s HATC guidance describes the existing non-refundable credit and the $20,000 eligible-expense limit.
What this does not guarantee
The $20,000 is an expense ceiling, not a $20,000 refund. Financing costs, routine repairs and renovations mainly intended to increase value are excluded. A proposal should not be presented as enacted law.
A practical Ontario example
Illustration only: A qualifying homeowner installs a ramp and accessible bathroom. The work may fit HATC rules, but the same invoices may need to be allocated between credits if the proposal becomes law.
What to check before changing the property or mortgage
Keep itemized invoices and ask the accountant which credit produces the appropriate claim under the final enacted rules. Finance the project without assuming a double tax benefit.
- How has the property actually been used each year?
- Was CCA claimed, and was any section 45 election filed?
- What was the property’s fair market value when its use changed?
- Where will refinance proceeds go, and can every transfer be traced?
- Which point needs written tax or legal advice before funds move?
Rajiv’s broker perspective
A mortgage approval answers whether a lender will finance the borrower and property under that lender’s policy. It does not confirm a tax deduction, principal-residence exemption, election or municipal-tax exemption. Before refinancing, changing occupancy or building a suite, I would separate the mortgage objective from the tax assumption, preserve the money trail and compare A-lender, alternative/B, MIC or private options only after the real use and exit plan are clear.
Related: Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre
Planning a refinance, rental conversion or family suite?
Send Rajiv the property use, ownership, mortgage balance, proposed funds and future plan. He can pressure-test the financing and identify tax questions that should be confirmed before the structure becomes difficult to unwind.
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