Addressing the public from Vancouver today, Prime Minister Justin Trudeau declared that a Bill of Rights designed to safeguard the rights of renters in Canada will be presented in the forthcoming Budget of 2024.
According to a statement issued by the Prime Minister’s Office (PMO), The Canadian Renter’s Bill of Rights will mandate landlords to provide transparent records of apartment pricing history.
This measure aims to equip newcomers to Canada with adequate information regarding reasonable rent rates upon their arrival, empowering them with the ability to negotiate fair rental terms.
Furthermore, the proposed Bill will establish penalties for renovictions, where landlords unjustly evict tenants by claiming the need for property renovations to accommodate family members, only to subsequently re-rent the unit. Additionally, it will institute a standardized lease agreement applicable nationwide.
The Prime Minister’s Office (PMO) has announced a new initiative regarding rent payments and credit scores. Moving forward, timely rent payments will be included in an individual’s credit score. Prime Minister Trudeau emphasized the importance of this step, particularly in light of the steep cost of rent in Canada. He believes Canadians should have credit recognition that can benefit them when applying for mortgages.
Trudeau outlined plans to modify the Canadian Mortgage Charter and engage landlords, banks, credit bureaus, and fintech companies to ensure rental history is reflected in credit scores. This adjustment could potentially enable newcomers to Canada to qualify for mortgages at more favorable rates when purchasing their first homes.
Additionally, the government intends to establish a $15 million Tenant Protection Fund. This fund will support legal aid organizations that work to safeguard tenants from unfair rent hikes, renovations, and problematic landlords.
Renting In Canada As A Newcomer
Rent prices in Canada have surged to record levels. Rentals.ca reports that the average asking rent for all types of residential properties across Canada stood at $2,193 in February 2024, marking a 10.5% increase compared to the previous year.
In major urban hubs like Vancouver and Toronto, rent prices are notably higher. The average cost for a one-bedroom apartment in Vancouver is $2,653, while in Toronto it is $2,495.
In March 2021, the average rent for a one-bedroom apartment in Canada stood at $1,685.
The cost of rent significantly affects newcomers to Canada. According to Statistics Canada data from December 2023, one out of every six newcomers rents their accommodation. Additionally, a study released by Statistics Canada in February of the same year revealed that over a third of recent newcomers were allocating more than a third of their pre-tax income towards rent.
To alleviate financial pressure on renters across Canada, the federal government implemented various measures throughout 2023. One such measure is the Affordable Housing Fund, a $14 billion initiative aimed at supporting the construction of new rental housing and the maintenance of existing ones.
Furthermore, the government incentivized developers by removing the Goods and Services Tax (GST) for the construction of apartment buildings, including those designated for students and seniors.
