Non-Canadian investors were an easy target. British Columbia and other provinces have sought to curb demand by targeting foreigners, and Trudeau promised in last year’s election campaign that he would temporarily ban international money from purchasing non-recreational residential properties.Article content
Younger Canadians are among the most affected by the affordability crisis, as they haven’t had the time to save enough money to keep up with soaring prices. Trudeau and Freeland pledged to help by creating a tax-free First Home Savings Account that would give first-time homebuyers a new tool to save up to $40,000 towards a home. Functioning like a registered retirement savings program, contributions put towards this savings vehicle would be tax-deductible and non-taxable, like a regular TFSA.
But most experts say the main driver behind record prices is a lack of supply. The federal government plans to set aside $4 billion over the next five years for the Canada Mortgage and Housing Corp. to develop 100,000 net new housing units through the launch of a new Housing Accelerator fund. The budget also set aside $1.5 billion over two years to create 6,000 new affordable units with at least 25 per cent of the funding directed towards women-focused housing projects.