Stronger protections for Canada's renters are coming as part of the upcoming Budget 2024, the federal government announced on Wednesday in Vancouver, including a new Canadian Renters' Bill of Rights.
The bill of rights, to be developed and implemented in partnership with provinces and territories, would require landlords to disclose an apartment's pricing history "so renters can bargain fairly." It would also crack down on renovictions, create a nationwide standard lease agreement, and "give renters more agency."
“It’s too hard to find an affordable place to rent, especially for younger Canadians," said Prime Minister Justin Trudeau. "That’s why in Budget 2024, we’re taking action to protect renters, make the rental market fairer, and open new pathways for renters to become homeowners. Let’s make sure renters count.”
The bill of rights is just one of three new measures Trudeau revealed on Wednesday. The federal government will also launch a new $15M Tenant Protection Fund. Money from this fund would go towards provincial legal aid organization to help them better protect tenants against unfairly rising rent payments, renovictions, or bad landlords.
This move comes as an increasing number of tenants are facing unlawful rent increases and bad faith evictions. In Ontario, for example, the number of applications for personal use evictions — an eviction type notorious for being used in bad faith — surged close to 80% last year. At the same time, rental demand has continued to soar, outpacing supply in major markets all across the country.
To help tenants move into homeownership, the government is also planning to amend the Canadian Mortgage Charter to allow renters to build up credit for on-time rent payments. This step will also involve having to call on landlords, banks, credit bureaus, and fintech companies to make the change and ensure rental history is taken into account in a person's credit score.
"Renters deserve credit for the money they put toward rent over the years," said Deputy Prime Minister and Minister of Finance Chrystia Freeland. "We’re helping them get credit for rental payments so they can qualify for a mortgage, or even a lower rate, sooner and unlock the door to their first home.”
The 2024 federal budget will be presented in full on Tuesday, April 16.
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