Both the federal government in Ottawa and the provincial government in Ontario are stepping up with budget measures to address the country’s housing shortage and affordability challenges.
In an unusual move Prime Minister Justin Trudeau revealed parts of the upcoming federal budget that will be delivered April 16th. Normally government’s hold budget measures as closely guarded secrets, but last week the prime minister spelled out plans for a renters’ “bill of rights”. It is chiefly aimed at younger Canadians in an effort to rein in shelter costs and, perhaps, set them on the path to home ownership.
From a mortgage and real estate point of view, the most significant measure will be a change in the rules to allow punctual and consistent rent payments to contribute to the renter’s credit score, similar to the way mortgage payments do for home owners.
Other measures include a standardized national lease agreement, rent history disclosure requirements for landlords and funding to help renters fight landlord actions, such as “renovictions”.
A day earlier the Ontario budget included $1.2 billion, over three years, to incentivize municipalities that meet or exceed housing construction targets. It is hoped the money will help streamline the development process and encouraging faster construction. More than $1.8 billion has been dedicated to building municipal infrastructure and water systems to support new housing.
Ontario is also allowing the expansion of the vacant home tax and bolstering the non-resident speculation tax.