Budget 2024 is seizing the opportunities of today to build a Canada that works better for every generation.
Ottawa – First, the government is delivering fairness for every generation with a housing plan that includes nearly 4 million new homes, transformative expansions to Canada’s social safety net to make life cost less and ensure Canadians get the care they need, and investments to create good jobs and economic growth. The government’s plan for tax fairness makes these investments in housing and younger generations possible by increasing capital gains taxes on 0.13 per cent of Canadians, in any given year.
Second, Budget 2024 is protecting renters’ rights and helping more renters become homeowners. The new Canadian Renters’ Bill of Rights, to be developed and implemented in partnership with provinces and territories, will protect renters from unfair practices, make leases simpler, and increase price transparency. In addition to protections from bad landlords, renters deserve credit for their on-time rent payments, which will make it easier to qualify for a mortgage, and even at a lower rate. That’s why the government is calling on banks, fintechs, and credit bureaus to prioritize launching tools to allow renters to opt-in to reporting their rent payment history to unlock pathways for more renters to become homeowners.
Third, Budget 2024 is making it easier to buy a first home with up to 30 year mortgages on new builds. To restore generational fairness to the housing market for younger Canadians, starting August 1, 2024, the strengthened Canadian Mortgage Charter will allow up to 30 year mortgage amortizations for first-time home buyers purchasing new builds. To enable lenders to offer 30 year mortgages, the government is today releasing a technical backgrounder outlining eligibility parameters. Combined with the Tax-Free First Home Savings Account to save for a down payment faster and helping renters build their credit score with their on-time rental payment history, first-time buyers will now have an additional 5 years to pay off their mortgage, resulting in lower monthly payments—allowing more young Canadians to unlock the door to their first home, while also encouraging more new supply.
Through Budget 2024, the federal government is building a fairer Canada, where every generation can reach their full potential—including buying a home of their own. It is making Canada’s tax system fairer by asking the very wealthiest to pay their fair share—so that we can make investments in prosperity for every generation.
“Canadians work hard to be able to afford a home, but the costs of a downpayment and a high monthly mortgage payment put homeownership out of reach for too many people, especially Millennials and Gen Z. First-time home buyers, especially younger Canadians, are often pushed out of the housing market due to the high costs. By extending mortgage amortizations to 30 years for first-time buyers on new builds, we are helping generational fairness in the housing market for younger Canadians.” – Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Canada can and will solve the housing crisis, and we’re going to do it by getting every home builder, not-for-profit, mayor, city councillor, and premier pulling in the same direction to build the homes Canadians need. This is about making sure every young person has the same opportunity to rent or own a place of their own as every generation that came before them, and this housing plan is how we are going to do it.” – Sean Fraser, Minister of Housing, Infrastructure and Communities
“The Public Lands for Homes Plan builds on our commitment to make housing affordable for all Canadians. We’re continuing to accelerate the process of leveraging surplus federal properties into housing and enabling the construction of additional housing units across the country. In doing so, we will restore the promise of Canada, where every generation can afford a place to call home.” – Jean-Yves Duclos, Minister of Public Services and Procurement