The Liberal Party has released a package of housing-related pledges that includes a new tax-free savings account for first-time home buyers, a $1-billion program to increase rent-to-own projects and 25-per-cent lower rates on CMHC mortgage insurance.
Under the new “Home Buyers’ Bill of Rights,” the Liberals also promise to ban blind bidding on homes, require the disclosure of recent sale prices and impose an anti-flipping tax that would require owners to hold a property for at least 12 months before reselling it.
The political bidding war for Canadian votes also includes an attempt to one-up Conservative Leader Erin O’Toole’s campaign pledge to support the construction of one million homes over three years. The Liberal plan promises to “build, preserve or repair” 1.4 million homes over four years.
“We’ll help you buy your first home sooner,” Mr. Trudeau said at an announcement Tuesday in Hamilton.
Canadian federal election 2021: Latest updates and essential reading ahead of Sept. 20 vote
The general issue of housing affordability – both the recent spike in home prices and the dearth of affordable rental units in Canadian cities – is widely viewed as top of mind for Canadians, and all the parties are targeting their platforms accordingly.
Housing pledges feature prominently in both the Conservative and NDP platforms, which have already been made public. The Liberals have not yet released a full platform.
But the challenge for federal leaders is that many key housing decisions, such as zoning and building approvals, are primarily the responsibility of provincial and municipal governments.
Nonetheless, the federal government is involved in housing through the Canada Mortgage and Housing Corporation, which insures mortgages. It also offers savings incentives and transfers to other levels of government for infrastructure projects, including social housing.
To reach their target of 1.4 million homes, the Liberals say they will provide a $4-billion “housing accelerator fund” to municipalities to make more core urban land available for new construction. Other promises include doubling the National Housing Co-investment Fund for a total of $2.7-billion over four years; $600-million toward the conversion of empty office space into housing; and a new home renovation tax credit for families adding a secondary unit to their homes for a live-in family member.
The proposed tax-free First Home Savings Account would allow Canadians under 40 to save as much as $40,000 toward their first home. The Liberals are also promising to double the First-Time Home Buyers Tax credit from $5,000 to $10,000, which they say will save users $1,500.
Story continues below advertisement
Another Liberal pledge that is similar to Conservative promises is a proposed ban on foreign ownership of new houses for the next two years.
The government has announced several policies as part of a national housing plan, but the program’s impact has been “limited,” large amounts of promised funds remain unspent and housing affordability has worsened, according to a report released this month by the Parliamentary Budget Officer.
Our Morning Update and Evening Update newsletters are written by Globe editors, giving you a concise summary of the day’s most important headlines. Sign up today.