HOME EQUITY ASSISTANCE (HEA)

Please note that a revised Canadian Armed Forces Relocation Directive (CAFRD) has taken effect as of March 1st, 2025.

This ReloFact explains Home Equity Assistance (HEA), how to know if you qualify for reimbursement, and if so, how it is reimbursed. For further information, please refer to Articles 8.2.13 and 8.2.14 of the CAFRD.

What is HEA?

HEA is an entitlement that is meant to assist you when you sell your home at a financial loss.

Please note that initial landscaping constitutes the installation, preservation or enhancement of ground
covering.

Initial landscaping includes:

• The planting of trees, bushes, grass, flowers, etc.
• The installation of soil, sodding, seeding, etc.
• The landscaping of timbers or similar items

Initial landscaping does not include:

• Site preparation
• Cutting, tree trimming, etc.
• Leveling land and clearing bushes, trees, etc.
• Building structures such as sheds, swimming pools, fences, etc.
• Placing concrete, gravel, artificial grass, etc.

For more information about entitlements pertaining to initial landscaping costs, please refer to Article 8.2.13.

The reimbursable amount is equivalent to the difference between the original purchase price and the sale price, minus any reduction in the sale price that is identified in the Home Sale Agreement and attributable to anything in the principal residence that required repair or replacement.

HEA new home construction

If the home was a new construction, the purchase price is the sum of the costs identified in the Building Agreement, as well as the costs incurred during the first year of occupancy of the residence for initial landscaping if those costs were not identified in the Building Agreement.

How do I know if I qualify for HEA?

You are entitled to reimbursement for any financial loss incurred in relation to the sale of your principal residence, and you sell your home for less than you purchased it for.

To confirm your eligibility for HEA, you are required to upload your original purchase agreement and your final sale agreement to the Member Secure Website (MSW). You will also need to submit a claim via the MSW to request for HEA once you have sold your home.

How is HEA reimbursed?

Depending on the availability of funds, reimbursement comes from the following accounts:

• Core Account 80% of the reimbursable amount or $30,000, whichever is less.
• Custom Account for any remaining reimbursable amount not reimbursed from the Core Account.

For example, if the original purchase price of a home was $400,000, and the sale price was $380,000,
the home was sold at a loss of $20,000. The maximum claimable amount in this case is $20,000.

• 80% of $20,000 = $16,000 paid from the Core Account
• $20,000 – $16,000 = $4,000 paid from the Custom Account if funds are available

Upon review and approval by Sirva, details are provided to the CAF. Funds will be paid to you after applicable tax deductions by the CAF and will be deposited directly onto your regular pay account. Please review the Taxable Benefits ReloFact for more information.

Tax Implications

Please be advised that while most benefits are non-taxable, some benefits may be. To maximize
the after-tax benefits that you are eligible for, please carefully review all information pertaining to
taxable benefits. Visit the Knowledge Centre to view the following resources:

• The Tax Implications VIP
• The List of Taxable Benefits

All applicable tax deductions will be withheld from your future pay by the CAF. To obtain your T4 and / or RL-1s, or for any issues and assistance, please contact DRBMRelocationPayBenefits- DGARPrestationsdereinstallation@forces.gc.ca. We recommend that you consult a professional financial planner and / or visit the CRA / MRQ website to find further information about tax implications, as Sirva Relocation Advisors are not tax specialists.