What Canadians Can Expect When It Comes to Housing Under the ‘New’ Liberal Government

Under the leadership of Prime Minister Mark Carney, the Liberal government has introduced a comprehensive housing strategy aimed at addressing Canada's housing crisis. Here's an overview of what Canadians can expect: Reuters

🏘️ Ambitious Homebuilding Targets

  • Goal of 4 Million New Homes: The Liberals plan to construct nearly 4 million homes by 2031, aiming to double the annual construction pace to approximately 500,000 homes. Canada.ca

  • Build Canada Homes (BCH): A new federal agency, BCH, will act as a developer to build affordable housing at scale, including on public lands. Liberal Party of Canada

🏗️ Leveraging Public Lands

  • Canada Public Land Bank: The government has identified over 80 underutilized federal properties, totaling approximately 430 hectares, to be repurposed for housing developments. Canada.ca+2Canada.ca+2PM of Canada+2

  • Public Lands Acquisition Fund: A $500 million fund has been established to acquire additional land from other government levels to facilitate housing projects. Canada.ca+1Canada.ca+1

💰 Financial Support for Builders and Buyers

  • Apartment Construction Loan Program: An additional $15 billion has been allocated to this program, aiming to support the construction of over 131,000 new rental homes by 2031-32. Budget Canada+2PM of Canada+2Canada.ca+2

  • Canada Secondary Suite Loan Program: Homeowners can access up to $40,000 in low-interest loans to add secondary suites, such as basement apartments, to their homes. PM of Canada+2Yahoo Finance+2Canada.ca+2

  • 30-Year Mortgage Amortizations: Starting August 1, 2024, first-time homebuyers purchasing new builds can opt for 30-year mortgage amortizations, easing monthly payment burdens. Canada.ca+1Yahoo Finance+1

  • Increased RRSP Withdrawal Limit: The Home Buyers’ Plan withdrawal limit from RRSPs has been raised from $35,000 to $60,000 to assist first-time buyers with down payments. Yahoo Finance+1WSJ+1

🛡️ Protecting Renters and Ensuring Fairness

  • Canada Rental Protection Fund: A $1.5 billion fund has been introduced to help non-profit organizations acquire and preserve affordable rental units. Reuters+5PM of Canada+5PM of Canada+5

  • Canadian Renters’ Bill of Rights: This initiative aims to standardize leases, enhance rent transparency, and protect tenants from unfair practices like renovictions. PM of Canada+2Canada.ca+2Canada.ca+2

  • Credit Recognition for Rent Payments: The government is encouraging lenders to consider on-time rent payments in credit evaluations, potentially aiding renters in qualifying for mortgages. Canada.ca+1Canada.ca+1

🏗️ Infrastructure and Innovation

  • Canada Housing Infrastructure Fund: A $6 billion fund has been established to support the development of essential infrastructure, such as water and waste systems, necessary for new housing developments. PM of Canada+2PM of Canada+2Canada.ca+2

  • Homebuilding Technology and Innovation Fund: Over $600 million is allocated to promote innovative construction methods, including prefabricated homes, to accelerate building processes. PM of Canada

⚖️ Fiscal Measures and Tax Reforms

  • Capital Gains Tax Adjustment: To fund these housing initiatives, the government has increased capital gains taxes for the wealthiest 0.13% of Canadians. WSJ+2Canada.ca+2Politico+2

  • GST Elimination for First-Time Buyers: The Goods and Services Tax has been removed for first-time homebuyers purchasing homes priced at or under $1 million. Liberal Party of Canada

These measures reflect the Liberal government's multifaceted approach to tackling housing affordability and availability across Canada. By combining increased housing supply, financial support, renter protections, and infrastructure development, the plan aims to make housing more accessible for all Canadians.WSJ