The 2022 Federal Budget is the first budget presented since a federal election took place that saw Justin Trudeau form a minority government in the fall of 2021. Since then, the Liberal government has joined in a sort of coalition with the NDP to keep them in power till 2025 so that work can get done for Canadians during this unprecedented time.
Throughout the campaign the government also made other promises such as creating a TFSA for first time home buyers, working on creating more inclusive rent to own opportunities to pave the way for renters to become owners, and create a more improved First Time Home Buyer Incentive to give Canadians the option of a deferred mortgage loan. The Liberal government also promised to double the First-Time Home Buyers Tax Credit, reduce monthly mortgage costs and build, preserve, or repair 1.4 million homes in the next four years. These are just some of the promises from the 2021 election campaign that are still being worked on, but since the campaign more promises have been made in the form of the 2022 Budget.
Recently, the federal government released the 2022 budget. Since the budget release, consultations, meetings, and debates have been going on to implement pieces of legislation. In the budget, the importance of affordable housing and accessible housing in Canada was brought up.
The government agrees that every Canadian has a right to a safe and affordable place to call home. Unfortunately, for Canadians across the country, the dream of homeownership has become unattainable. For this reason, the government announced a historic investment of $14 billion in housing through Budget 2022. The government plans to use this investment to take significant steps to addressing the growing problem of housing affordability.
These steps include:
- Putting Canada on the path to double our housing construction over the next decade
- Helping Canadians buy their first home
- Protecting renters and buyers
- Curbing unfair practices that drive up the price of housing
- Continuing to fight homelessness and support housing affordability, particularly for the most vulnerable
- Addressing the housing needs of Indigenous peoples.
In only a few decades the housing crisis has become extreme. The dream of buying a nice house is no longer as attainable as it used to be. For these reasons, budgets like this are welcomed with open arms, but unfortunately the housing crisis is not going to be short term, and we anticipate problems for years to come.
On the bright side, budgets like this show that it is within the government’s best interest to help Canadians afford proper housing. We are also very excited about a potential Home Buyers’ Bill of Rights that the government is working on that would accomplish the following:
- Ban blind bidding
- Establish a legal right to a home inspection
- Ensure total price transparency on the history of recent house sale prices
- Require real estate agents to disclose to all participants in a transaction when they are involved in both sides of a potential sale
- Move forward with a publicly accessible beneficial ownership registry
- Ensure banks and lenders offer mortgage deferrals for up to 6 months in the event of job loss or other major life event
- Require mortgage lenders to fully inform buyers of the full range of financing choices and programs available.
We will continue to monitor the changes and adaptations that take place within the next few years of the Liberal governments mandate. We are cautiously optimistic that many of these benefits will take shape and make a difference within the Canadian housing economy that will create positive changes for Canadians.
Mortgage Brokers with GLM Mortgage Group | Dominion Lending Centres stay current on industry news that will impact Canadians in obtaining seamless financing. If you have any questions, contact us and we’ll be happy to assist.