Achi news desk-
The federal government will create a new “Canadian Tenant’s Bill of Rights” that would require landlords to disclose their property’s rental price history to prospective tenants.
Prime Minister Justin Trudeau made the announcement Wednesday in Vancouver, saying it is one of three new measures that will be part of the upcoming federal budget, which will also include a new housing assistance fund and a push to get payments rent to affect credit scores.
Rental demand outstripped supply in most major markets across the county last year, according to a Canada Mortgage and Housing Corp. review. (CMHC) published in January. The average two-bedroom apartment went for $1,359 per month, while condo rental costs were $2,049.
Canada’s overall vacancy rate fell to a new low of 1.5 per cent last year. Regionally, rates fell in most of Canada’s larger cities, while rental costs increased.
Tenant rights advocates have long championed the concept of a rental register, which could allow renters to see what the previous tenant paid for a unit before accepting a new rate.
The incoming “Bill of Rights” aims to empower renters to “bargain fairly,” a press release said Wednesday.
Alongside it, Trudeau promised a $15 million fund for legal aid services to “protect tenants from unfairly rising rent payments, renewals, or bad landlords.”
“In Canada today, more people are renting than ever before… Almost two-thirds of young Canadians rent their homes,” he said, adding that younger people are spending larger shares of their income on rent than other generations have.
“Young people may want to start a family, but they don’t know how they can afford anything more than a one-bedroom flat.”
The government will also amend the Canadian Mortgage Charter and “require” banks and credit companies to incorporate rental payments into Canada’s credit history, the press release said.
“This will make it easier for you to qualify for a mortgage, or even qualify you for a lower rate,” Trudeau said, lamenting that a property owner can build their credit score while paying down their mortgage , but someone who pays a monthly rent cannot.
“You spend $2,000 a month on rent. That doesn’t give you credit. It doesn’t give you any credit,” he said.
Deputy First Minister and Finance Minister Chrystia Freeland announced earlier this month that the 2024 federal budget will be presented on Tuesday, April 16.
Noting that Canadians continue to feel the pinch of inflation, while increasingly preoccupied with looming mortgage renewals, Freeland signaled at the time that the budget would focus on housing, affordability and jobs, while balancing the need to wait is “fiscally prudent” by limiting major new spending. plans.
With files from Rachel Aiello of CTV News
