Canada's 2024 Budget: A Breakdown for Home Buyers and Investors

Canada's 2024 Budget: A Breakdown for Home Buyers and Investors
DATE
April 17, 2024
READING TIME
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The recently announced federal budget by Deputy Prime Minister Chrystia Freeland prioritizes "fairness for every generation." While aiming to address broader economic goals, the budget offers significant news for the housing market. Here's a closer look at key measures impacting homeownership

Boosting Housing Supply

  • Public Lands for Homes Plan: This ambitious project aims to build 250,000 new homes by 2031 on public lands, including converting underutilized Canada Post and National Defense properties.
  • Increased Rental Construction: The budget allocates an additional $15 billion to the Apartment Construction Loan Program, supporting over 131,000 new rental units by 2031-32.
  • Collaboration for Affordability: "Canada Builds" is a new program facilitating cooperation between federal, provincial, and territorial governments to accelerate affordable housing construction on underused lands.

Making Homes More Accessible

  • Canada Rental Protection Fund: This $1.5 billion program aims to preserve and expand affordable rental housing options.
  • Enhanced Affordable Housing Investment: The budget allocates an additional $1 billion to the Affordable Housing Fund, along with a permanent Rapid Housing Stream to expedite affordable housing projects.
  • Extended Mortgage Options: First-time homebuyers purchasing new homes can now benefit from 30-year mortgages, making monthly payments more manageable.
  • Increased Down Payment Savings: The Home Buyers' Plan withdrawal limit increases to $60,000, empowering first-time buyers to save more for down payments through tax-sheltered RRSPs.
  • GST Exemption for Student Housing: Educational institutions are incentivized to build more student housing by receiving a GST exemption on new student residences.

Looking Beyond Housing

  • Child Care Expansion: An additional $1 billion will be invested in child care spaces, supporting the government's goal of affordable child care across Canada.
  • Disability and Healthcare Support: The budget introduces the Canada Disability Benefit and initiates a national pharmacare program, demonstrating the government's commitment to social well-being.
  • Educational and Employment Initiatives: Increased support for students and incentives for healthcare and social service professionals in rural areas are also proposed.

At Coldwell Banker Horizon Realty, we believe this budget's focus on affordable housing aligns with our goal of helping people achieve homeownership. We will continue to monitor these developments closely and provide you with the latest information to make informed real estate decisions.

For a complete overview, read the official budget document.

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