The Canadian Federal Government has recently unveiled several key measures impacting Canadians who are looking to buy or already own homes. These measures are part of the newly announced Canada’s Housing Plan and the 2024 Federal budget released on April 16, 2024.
We’re compiling the highlights here, and focusing on the measures which impact housing and home ownership in Canada. As our analysis is fairly long we’re breaking it down into the following 3 parts:
- The Good (Part 1 here)
- The Good Marketing (Part 2)
- The Bad and the Ugly (Part 3)
The Good (Part 1) 👍
- Increasing Housing Supply 🛠️
- 3.87 million new homes by 2031 🏗️: An increase of 2 million net new homes on top of the 1.87 million Canada was already on track to build.
- $400 million boost 💰 to the $4 billion Housing Accelerator Fund, aimed at cutting red tape and speeding up construction nationwide.
- Enhanced rental supply 🏢:
- GST removal for rental, co-op, and student housing to enable cheaper financing for builders.
- Accelerated capital cost allowance for apartments to boost builders’ after-tax return on investment.
- Canada mortgage bonds limit increased from $40 billion to $60 billion, facilitating low-cost financing for multi-unit residential properties.
- $15 billion in additional loans for the Apartment Construction Loan Program, targeting the construction of 30,000 new rental apartments by 2031-32.
- Canada Builds program 🇨🇦: Combines federal loans with provincial and territorial investments to increase rental construction.
- $477.2 million over 5 years for the Canada Rental Protection Fund to safeguard affordable housing.
- $100 million from the Apartment Construction Loan program for building homes on top of shops and businesses.
- Public Lands for Homes Plan: Utilizing vacant public lands to develop 250,000 new homes by 2031.
- $6 billion over 10 years to support infrastructure in growing communities.
- Support for Individuals 🧑🤝🧑
- Home Buyers’ Plan limit increased to $60,000 (from $35,000): Assists first-time buyers with tax-free withdrawals from their RRSPs. It also includes an extension of the grace period to start repaying the loan by an additional threa years.
- Tenant Protection Fund: $15 million over 5 years to support tenant rights and legal assistance.
- National Flood Insurance Program: $15 million to kickstart flood insurance from 2025.
- Boosting Skilled Labor 🔨
- $10 million for Skilled Trades Awareness: Encourages high school students to pursue careers in skilled trades.
- $50 million for Foreign Credential Recognition: Helps skilled trades workers in residential construction.
- $90 million for the Apprenticeship Service: Creates opportunities for training the next generation of skilled workers.
- Innovation in Housing Technologies: $50 million over 2 years to foster innovation in housing technologies in Canada.
- Modernizing Housing Data: $20 million allocated to Statistics Canada and CMHC to enhance housing data collection.
Stay tuned for Part 2, where we’ll delve into measures that appear beneficial in the affordability crisis fight but may have limited impact in their current form. 🧐
