2024 Federal Budget

Earlier this month, the 2024 federal budget was tabled, aimed at providing “Fairness for every generation”. Here is a summary of all of the real estate-related initiatives that were announced:

• First Time Home Buyers -Effective immediately, increase from $35,000 to $60,000 that a first time buyer (up to $120,000 for a couple) can withdraw from their RRSPs under the Home Buyer’s Plan to help with purchasing a home; extended grace period of up to 5 years for repayment

• Extended amortization to 30 years for first time buyers purchasing a newly built home as of August 1, 2024

• Capital Gains Tax change – as of June 25, 2024, for individuals, capital gains over $250,000 are to be taxed at 66.7%

• Canada’s Housing Plan – with the ultimate goal of bring 3.87 million new homes to the market by 2031, this Plan is outlined in 3 parts: to break down regulatory and zoning barriers to building, provide low-cost financing to support building, and making more land available for building

• $400M more to the $4B Housing Accelerator Fund to fast-track construction of 12,000 additional new homes; here is a list of the areas that have building agreements in place and the number of new homes that will result:

• 5M to overhaul Canada Lands Company over next 3 years to convert public lands to housing

• $500M over next 5 years to create Public Lands Acquisition Fund to acquire land from other arms of Government to convert to mix-market housing

• $112.6M over next 5 years to CMHC to unlock more federal land for affordable housing projects (min 1500 homes, including 600 affordable housing units)

• $4M over next 2 years to build modular housing units on 4 sites, including Downsview, Toronto

• Announcement that 5 federal properties to be leased to builders to build over 800 new homes including 100 at the Arbo neighbourhood in Toronto

• $15B, partnerships, and reforms to the Apartment Construction Loan Program, adding 30,000 rental units

• $6B over next 10 years to fund upgrades to the infrastructure to allow more building

• $50M over next 2 years for the Homebuilding Technology and innovation Fund to encourage construction innovation ie. Modular homes, use of 3D printing, and panelized construction

• $20M over next 4 years to CMHC and Stats Canada to modernize housing data collection

• $409.6M over next 4 years to CMHC to offer low interest loans up to $40K to homeowners adding a second suite to their existing homes

• Temporary accelerated CCA from 4-10% to eligible builders to encourage more purpose-built rental projects

• Removal of GST from newly-built student housing, incentivizing educational institutions to build more student housing units

• $100M over next 2 years to Apprenticeship Service to create placements to support the construction industry

• $10M over next 2 years to Skilled Trades Awareness and Readiness Program to encourage careers in skilled trades

• $50M over next 2 years to Foreign Credential Recognition Program to streamline foreign skilled trades workers into the construction industry

OTHER

• Aligning immigration with housing capacity, including cap on number of study permit applications

• Creation of the Canadian Renters’ Bill of Rights to crack down on renovictions, national standardized lease, etc.; also $15M over 5 years to the Tenant Protection Fund

• Appeal to financial institutions and tech companies to make tools available for tenants to tie their rental payments to credit reporting facilities that would allow tenants to build credit for future purchases

• $900M to the Canada Greener Homes Affordability to support energy efficient retrofits for low-to-median income earning homeowners

• Halal mortgages – alternative financing products to help Muslim Canadians with purchasing homes

• Intention to develop a tool with the CRA to aid in income verification for mortgage applications

• $73.1M over next 5 years and $14.7 per year ongoing to the CRA to address tax non- compliance in real estate transactions

• $15M to CMHC to implement national flood insurance program

• Restrict purchases of single family homes by large corporations

• $976M over next 5 years and $24M in future years to CMHC to launch a Rapid Housing stream to build deeply affordable housing, supporting housing and shelters for most vulnerable

• $477.2M over next 5 years and $147.8M in future years to launch a new $1.5B Canada Rental Protection Fund through CMHC to help affordable housing providers acquire properties and keep rents stable

• $1.3B over next 4 years to Infrastructure Canada for Reaching Home to prevent and reduce homelessness, and to address encampments and needs of shelters

• $1.1B over next 3 years to Immigration, Refugee, Citizenship Canada for transitional housing solutions for asylum claimants

Some of these initiatives take place immediately, while some still need to be passed into legislation. If you have any questions regarding how these effect your directly, feel free to reach out to us .