Prime Minister Justin Trudeau has announced that Canada will introduce a rental bill of rights in the upcoming Budget 2024. A release from the Prime Minister’s Office (PMO) states that the Canadian Rental Bill of Rights will require landlords to disclose a clear history of the apartment pricing. As a result, this will help newcomers to have a clear idea of what they should be paying rent when they arrive & provide bargaining power for a fair rate.
In addition, the Bill will also introduce consequences for renovictions & create a nationwide standard lease agreement. The PMO also states that on-time rent payments will be factored into a person’s credit score in the future. Trudeau states that given the high cost of rent, Canadians deserve credit that they can use when applying for a mortgage.
He states that he will amend the Canadian Mortgage Charter & call on landlords, credit bureaus, banks, & fintech companies to ensure that rental history is taken into account in your credit score.
This might make it possible for newcomers to Canada to qualify for mortgages at a lower rate when they are ready to buy their first home. Lastly, the government will be launching a $15 million Tenant Protection Fund to provide funding for legal aid organizations that help protect tenants against unfair rent increases, bad landlords, or renovictions.
Renting In Canada As A Newcomer
Canada will introduce a rental bill of rights as rents in Canada have reached new heights. According to Rentals.ca, asking rents for all residential property types in Canada averaged $2,193 in February 2024, a year-over-year increase of 10.5%.
However, it is much higher in Canada’s larger urban centers, with the average price for a one-bedroom apartment in Vancouver coming in at $2,653 & $2,495 in Toronto.
For context, the average rent for a one-bedroom apartment in Canada in March 2021 was $1,685.
The cost of rent impacts newcomers when they arrive in Canada. Statistics Canada data from December 2023 found that 1 in every 6 newcomers rents their accommodation. Another Statistics Canada study reveals that more than a third of recent newcomers were spending one-third of their pre-tax income on rent.
To help lessen this financial strain for all renters in Canada, the federal government introduced other measures throughout 2023 to help Canadians & newcomers afford their rent. For instance, the Affordable Housing Fund is a $14 billion initiative to support the building of new rental housing & the repair/ renewal of existing housing.
The government also removed the Goods & Services Tax for developers as an incentive to build more apartment buildings, including student housing & senior residences.