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What's New in Housing Policies: 8 Key Changes From the 2024 Federal Budget.

Updated: 2 days ago

The 2024 federal budget, announced on April 16th, introduces several new housing policies aimed at improving affordability and accessibility for Canadians.



Here's a look at the 8 key changes from the 2024 federal budget.


Canadian Renters’ Bill of Rights

In recent years, more Canadians are renting for longer periods of time before transitioning into homeownership. This trend has led to the 2024 budget announcing several measures intended to effectively protect tenants and strengthen their path to buying real estate.


In Budget 2024, the Canadian Renters’ Bill of Rights was introduced, proposing a nationwide standard lease agreement. It also mandates landlords to disclose rental price history on properties. Additionally, the Budget calls on banks and lenders, through the Canadian Mortgage Charter, to enable tenants to report their rental payment history to credit bureaus. This initiative aims to improve tenants' credit scores, thereby enhancing their future mortgage applications.


Moreover, $15 million over five years has been allocated to a Tenant Protection Fund, which will provide legal support to tenants.


Funding for the construction of new homes

The federal government is promising billions of dollars in spending towards the construction of new housing.


The 2024 budget introduced the Canada Builds initiative, enabling the country’s Apartment Construction Loan Program to collaborate with provincial governments to construct more rental accommodation. Starting next year, the program will receive an additional $15 billion in funding to create 30,000 new homes. This funding increase brings the program’s total allocation to over $55 billion, set to deliver 131,000 units by 2031.


The Canadian Housing and Mortgage Corporation’s (CMHC) Housing Accelerator Fund will also receive $400 million to construct 12,000 new housing units.


Furthermore, Infrastructure Canada will receive $6 billion over the next decade for the Canada Housing Infrastructure Fund. This fund will support the creation of water and waste infrastructure required for new communities. Additionally, $100 million over two years will be allocated to Employment and Social Development Canada to support apprenticeship and skilled-trade programs addressing the workforce shortage in the housing construction sector.


30-year mortgage amortizations for first-time buyers of new homes

Through the Canadian Mortgage Charter, the 2024 budget announced that starting on August 1st, first-time buyers purchasing a newly-constructed home can access 30-year mortgage amortizations, a product that has previously only been available to those with a down payment of at least 20%.


In practice, a longer amortization period would allow borrowers to repay their mortgage over an extended timeline, thereby reducing their monthly payments.


Amendments to the Home Buyers’ Plan

Saving for a down payment is one of the largest hurdles new homebuyers face. To make it easier to access funds for a home purchase, Budget 2024 unveiled an amendment to the withdrawal limit on the Home Buyers’ Plan, which has been increased from $35,000 to $60,000 as of April 16th.


Support for single-family home suites

The 2024 budget, through the Canadian Mortgage Charter, announced that as of August 1st, first-time buyers purchasing a newly constructed home can access 30-year mortgage amortizations. Previously, this product was only available to those with a down payment of at least 20%.


A longer amortization period allows borrowers to repay their mortgages over an extended timeline, thereby reducing their monthly payments.


Increase to the inclusion rate on capital gains above $250,000

Effective June 25th, Budget 2024 proposes an increase to the inclusion rate on capital gains realized annually above $250,000 by individuals, corporations and trusts from one-half to two-thirds, by amending the Income Tax Act. This would include the sale of secondary residences and investment properties.


Currently, only 50% of capital gains are taxable. The 2024 budget would increase the inclusion rate to 66% on capital gains above $250,000. The sale of principal residences will continue to be exempt from capital gains tax.


New funds for post-war housing catalogue

In December 2023, the federal government announced plans to modernize its post-war home design catalogue, offering standardized home blueprints to expedite the creation of essential housing. The 2024 budget has allocated $11.6 million towards developing 50 home designs, encompassing row homes, fourplexes, sixplexes, accessory units, and modular homes.


Conversion of public lands into housing

Land scarcity poses a significant challenge to new housing development. To address this issue, the federal government plans to leverage public lands to create space for new housing, aiming to build 250,000 new homes by 2031 under the Public Lands for Homes Plan. In Budget 2024, the government announced intentions to lease public land to builders, reducing capital costs, and assess the federal lands portfolio for more suitable housing sites. Additionally, plans include repurposing federal office buildings into housing to further maximize land use.


Over the next three years, $5 million will be allocated to the Canada Lands Company to support initiatives for building on public lands.


In conclusion, the 2024 federal budget introduces key measures to address Canada's housing challenges. Initiatives such as the Canadian Renters’ Bill of Rights, increased funding for new home construction, and support for first-time buyers aim to improve affordability and accessibility. Plans to modernize home design catalogues, use public lands for housing, and amend capital gains policies demonstrate a comprehensive approach to tackling the housing crisis. These efforts signal a commitment to creating a more inclusive and sustainable Canadian housing sector. 


Want to know more about the 2024 federal budget? You can read the full budget announcement here.

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If you're considering buying or selling a home, don't hesitate to contact Royal LePage Estate Realty. Our experienced real estate agents are here to help you navigate the market and make informed decisions. Contact us today to start your real estate journey!

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RLPE, Royal LePage, Royal LePage Estate Realty Royal LePage Blog, Blogs, Real Estate News, Real Estate Canada, Canadian Housing Market,  HomeownershipCanada, Market Trends, Canadian Renters’ Bill of Rights, New home construction funding, 30-year mortgage amortizations, Home Buyers’ Plan amendments, Single-family home suites support, Capital gains inclusion rate increase, Post-war housing catalog modernization, Public lands for housing development, Federal budget 2024 housing policies, Affordable housing initiatives


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