The Canadian federal government has announced new measures to address the country’s housing crisis. Officials call it the most ambitious housing plan in Canadian history.
The plan aims to build nearly four million new homes, tackle affordability, and increase supply.
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance outlined bold steps to move the plan forward. Alongside her, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, emphasized the need for immediate action.
These initiatives aim to help students, renters, and homebuyers nationwide.
One key measure targets corporate investors who purchase single-family homes. The government believes these large buyers are inflating home prices. New consultations will focus on restricting their ability to acquire such properties.
Canadians, municipalities, and other stakeholders can provide feedback until December 19, 2024.
Freeland highlighted the importance of leveling the playing field. Canadians trying to buy homes shouldn’t have to compete with large investors. This measure aims to make homeownership more achievable for everyday Canadians.
Another major announcement addresses the growing demand for student housing. The government plans to remove the GST from constructing new student residences.
It follows a similar move in September 2023, when the GST was eliminated on purpose-built rental housing.
Students face growing pressures in Canada’s rental market. Rising costs have made finding affordable housing a challenge. The government hopes to ease these burdens by incentivizing universities and colleges to build residences.
Consultations on this initiative are open until January 20, 2025.
Freeland described this as a “win-win” for students and educational institutions. Removing the GST reduces school construction costs and frees up housing in rental markets, benefiting students and renters alike.
The government is also taking steps to make mortgages more flexible. Starting November 21, 2024, mortgage holders can switch lenders more easily.
The Office of the Superintendent of Financial Institutions has removed the mortgage stress test for uninsured borrowers at renewal.
This reform allows borrowers to shop around for better rates without requalifying. It ensures that switching lenders will not require changes to loan amounts or amortization periods.
This change encourages competition among lenders, which could lower Canadian mortgage costs.
Freeland said this measure empowers homeowners to make smarter financial choices. Removing barriers means families can find better deals at critical times.
It aligns uninsured mortgage rules with existing benefits for insured borrowers.
Federal land is also part of the government’s strategy. Duclos announced that 12 additional federal properties will be repurposed for housing development.
These lands are in cities like Calgary, Ottawa, London, Laval, Dartmouth, and Whitehorse.
Turning underused federal properties into housing is expected to yield significant results. Together, these sites could support the construction of up to 250,000 new homes.
Builders now access 83 federal properties through the Canada Public Land Bank.
This approach addresses two issues simultaneously: increasing housing supply and revitalizing unused land. Duclos emphasized that these efforts contribute to community development and national growth.
Quebec will also receive additional support to accelerate housing projects. The federal government has added $92 million to the Housing Accelerator Fund agreement with Quebec, supplementing the $1.8 billion contract signed in November 2023.
Municipalities in Quebec have shown a high demand for this funding. The extra resources will help communities fast-track housing construction, ensuring that momentum is not lost in meeting the province’s growing housing needs.
Duclos praised Quebec for its proactive approach. He noted that federal-provincial collaboration is critical to tackling the housing crisis. This funding will help municipalities build the homes their residents desperately need.
Freeland and Duclos reiterated that this housing plan is comprehensive. It addresses the needs of students, renters, and first-time homebuyers and tackles broader issues like affordability and competition.
The government hopes to refine its policies by involving Canadians in consultations. Officials want feedback on how these measures can be most effective.
The plan emphasizes long-term goals in addition to direct actions. Building new homes takes time, but these steps lay a strong foundation. Immediate reforms address pressing challenges while paving the way for sustainable solutions.
The government’s housing plan reflects a balanced strategy. It combines financial reforms, incentives for construction, and better resource use, all of which aim to create lasting change for Canadians.
With consultations underway, officials urge Canadians to participate. By sharing their views, individuals can help shape the future of housing in Canada. Every voice counts in this critical national conversation.
Freeland concluded by reaffirming the government’s commitment to housing. This plan is bold, but the challenges demand bold solutions. Canada’s future depends on providing affordable homes for every generation.