Canadian’s will have access to more affordable housing based on the 2022 Federal Budget Plan…
There’s no doubt that many Canadians struggle to find affordable housing in the current market.
Here’s the good news!
The government is shifting its focus and attention to make housing affordable for Canadians and increasing housing inventory. The Federal Budget was announced yesterday highlighting housing initiatives to bring this into practice.
Below is what’s set on the table for housing initiatives to be included in the budget:
Foreigner Buyer Ban:
Foreigners will no longer be allowed to purchase housing in Canada for the next two years. This will apply to condos, apartments, and single residential units. It is less likely to affect resale housing, but more so presale construction. However, foreigners on work permits, students on student visas, and individuals with permanent residency are excluded from this ban.
“Tax-Free First Home” Savings Account:
Starting next year, the government will also implement a savings account for Canadians under 40 to save up to $40,000 towards their first home. Canadian can contribute up to $8,000 per year. This will allow first time home buyers to withdraw this money tax-free to put towards their home with out having to repay it.
$4B set aside to help municipalities update zoning and permit systems to speed up construction:
Developers will be able to bring housing to the market quicker and efficiently by cutting the red tape around the time it takes to get approval for development projects.
$1B for the construction of affordable housing units:
To help increase affordable housing options for Canadians, budget will be set aside for construction of these units. It isn’t yet confirmed how many units will be created.
$1.5B in loans and funding for co-op housing:
There are just over 92,000 units of co-op housing in Canada as reported by the Co-Operative Housing Federation of Canada. Most of these which were built in the ‘70s and ‘80s are now needing to support to cover repair costs. In this case, $1.5B has been budgeted to ensure make sure co-ops continue to receive funding to cover such costs and create at least 6,000 new housing units for low-income families.
To learn more, or to watch the Federal Budget 2022 announcement visit: https://www.ctvnews.ca/video?playlistId=1.5840481
Resources:
Federal budget 2022: New housing, defence spending | CTV News
Housing Co-ops Featured in CBC Article on Cost of Living – CHF B