What does it mean for the average Canadian?
Canada recently released its 2023 Fall Economic Statement, emphasizing strategies to tackle housing challenges within the country. The initiatives unveiled aim to address housing affordability, support prospective homebuyers, and stimulate the creation of more rental units.
The Canadian Mortgage Charter acknowledges the financial strain faced by variable-rate mortgage holders due to rising interest rates. To assist borrowers, financial institutions will offer relief measures, including temporary mortgage amortization extensions, waived fees, and eliminating the stress test requirement for insured mortgage holders switching lenders at renewal. Homeowners will also receive proactive communication about their financial options in advance of their mortgage renewal.
Funding for Affordable Housing is a significant focus, with billions allocated to create over 7,000 new homes by 2028. Non-profit organizations, cooperatives, and public housing providers will receive additional funds over three years through the Affordable Housing Fund. Nearly $310 million will support the Co-operative Housing Development Program.
Incentives for Apartment Builders aim to boost rental housing construction. Starting in 2025-2026, an additional $15 billion in financing will be available through the Apartment Construction Loan Program. This significant investment targets the creation of over 30,000 new homes across Canada, contributing to the goal of 101,000 new homes by 2031-2032.
Tax Measures for Short-Term Rentals seek to alleviate pressure on long-term housing availability. Stricter regulations will be enforced, including $50 million in funding to support municipal enforcement against short-term rentals. Additionally, income tax deductions for short-term rental-related expenses will be denied in regions where such rentals are banned or for operators not compliant with licensing requirements.
These comprehensive initiatives are designed to reshape the housing landscape in Canada, striving to alleviate affordability concerns and increase housing availability nationwide. For further details, the full 2023 Fall Economic Statement can be accessed here.