The federal government wants to support those who rent their homes with a protection fund, a bill of rights and a plan to give reliable renters credit when they step up to buy a home.
Prime Minister Justin Trudeau says there's something fundamentally unfair about paying $2,000 a month for rent, while those paying the same for a mortgage get equity and build their credit score.
Young Canadians put a lot of their hard-earned money towards rent every month. We think that should count for a lot more – like towards your credit score.
— Justin Trudeau (@JustinTrudeau) March 27, 2024
The measures are part of next month's federal budget and include a $15-million Tenant Protection Fund, which would pay provincial legal aid groups to help tenants against unfairly rising rents, 'renovictions' or bad landlords.
The Canadian Renters' Bill of Rights would also need partnerships with provinces and territories to require landlords to disclose a history of unit pricing and create a national standard for lease agreements.
The government wants landlords, banks and credit bureaus to make sure rental history is taken into account on credit scores, giving young first-time buyers a better chance at getting a mortgage, with a lower interest rate.
Finance Minister Chrystia Freeland says a no-holds-barred plan in the upcoming budget will help young Canadians "wrestle down" the cost of owning and renting a home.
"We need to make real the promise of Canada for younger Canadians," Freeland said. "We are going to pull every single lever and push every single button to deliver more housing without delay."
