On April 16th, the Canadian government announced several new initiatives to create more housing and make renting and homeownership easier.
Here are eight key policies from this year's budget:
1. Canadian Renters’ Bill of Rights
With more Canadians renting longer, the 2024 budget introduces measures to protect tenants and help them buy homes. This includes a nationwide standard lease and requiring landlords to share rental price histories. Tenants can also report rent payments to credit bureaus to improve their credit scores for future mortgage applications.
2. Funding for New Homes
The government is investing billions in new housing. The Canada Builds initiative will add $15 billion to the Apartment Construction Loan Program, aiming to build 131,000 new homes by 2031. The CMHC’s Housing Accelerator Fund gets $400 million for 12,000 new units. Infrastructure Canada receives $6 billion over ten years to support water and waste infrastructure for new communities, plus $100 million for skilled-trade programs to build housing.
3. 30-Year Mortgages for First-Time Buyers
Starting August 1st, first-time buyers of new homes can get 30-year mortgages, reducing monthly payments by spreading them out over a longer period.
4. Higher Withdrawal Limits for Home Buyers’ Plan
To help new buyers save for a down payment, the budget increases the Home Buyers’ Plan withdrawal limit from $35,000 to $60,000.
5. Support for Secondary Suites
The budget allocates $409.6 million over four years for low-interest loans up to $40,000 for homeowners to add secondary suites, providing extra living space or rental income.
6. Higher Tax on Big Capital Gains
Starting June 25th, the tax rate on capital gains over $250,000 increases from 50% to 66%, affecting sales of secondary residences and investment properties. Principal residences remain exempt.
7. New Designs for Post-War Housing
The budget allocates $11.6 million to modernize home designs, including row homes, fourplexes, sixplexes, accessory units, and modular homes.
8. Turning Public Land into Housing
To tackle land scarcity, the government aims to build 250,000 new homes by 2031 by using public land. They plan to lease public land to builders and convert federal office buildings into housing, with $5 million allocated over three years to support these initiatives.
Want to learn more about the 2024 federal budget? You can read the full announcement here.
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