The federal government’s housing plan is the most ambitious in Canadian history and will build nearly 4 million new homes. As part of this plan, the government is cracking down on large, corporate investors who buy up single-family homes, removing the GST from student residences to build more student housing, unlocking underused federal lands to build homes on, helping provinces and municipalities build homes faster, and delivering the boldest mortgage reforms in decades to unlock homeownership for every generation.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, announced significant progress to deliver Canada’s housing plan.
First, the Deputy Prime Minister and Minister of Finance launched consultations to confront the financialization of housing, because Canadians purchasing a home should be bidding alongside other prospective homeowners, not against very large corporate investors. To make housing more affordable for Canadians, the federal government is seeking feedback from Canadians and stakeholders on ways to restrict the purchase and acquisition of existing single-family homes by very large corporate investors. All Canadians, as well as stakeholders including provinces, territories, and municipalities, are invited to provide comments on this consultation by December 19, 2024.
Second, the Deputy Prime Minister and Minister of Finance launched consultations to remove the GST on the construction of new student residences, to incentivize Canada’s educational institutions, including not-for-profit universities, public colleges, and school authorities, to build more student housing and ease rental housing pressures for students. Removing the GST from student residences builds on the removal of the GST from purpose-built rental housing, effective September 14, 2023. All Canadians, as well as stakeholders including educational institutions, are invited to provide feedback on the draft legislative and regulatory amendments by January 20, 2025.
Third, the Deputy Prime Minister and Minister of Finance highlighted that starting November 21, 2024, more mortgage holders will be able to switch lenders at time of renewal, allowing them to shop around for the best rate. This is made possible by the Office of the Superintendent of Financial Institutions’ (OSFI) removal of the mortgage stress test (also known as the minimum qualifying rate) at renewal for uninsured mortgage holders. Specifically, borrowers will now be able to straight switch from one federal lender to another, with no increases to the loan amount or remaining amortization timeframe. Already, insured mortgage holders can switch lenders at renewal without requalifying with the stress test.
Fourth, the Minister of Public Services and Procurement and Quebec Lieutenant announced that an additional 12 underused federal properties have been identified as suitable for building new homes, including in Calgary, Ottawa, London, Laval, Dartmouth, and Whitehorse. With these additional federal properties added to the Canada Public Land Bank, a total of 83 federal properties have now been identified for housing development and are available to homebuilders as of today. This is part of the federal government’s work to turn unused and underused federal properties into 250,000 new homes.
Fifth, the Minister of Public Services and Procurement and Quebec Lieutenant highlighted yesterday’s announcement of an additional $92 million for the Housing Accelerator Fund agreement with Quebec. This federal top-up will help meet the high demand from municipalities for the $1.8 billion in federal-provincial funding available through the initial agreement with Quebec, signed in November 2023.
Quotes
“We are delivering on the most ambitious housing plan in Canadian history, to build 4 million homes and make the housing market fairer for first-time buyers and renters alike. Building more student housing will relieve rental demand for students and confronting the financialization of housing will ensure homes are for Canadians, not a speculative asset class for investors. We are taking action on all fronts to build more homes and make housing more affordable for Canadians.”
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Safe, accessible and affordable housing options are out of reach for far too many Canadians. Since the launch of the Canada Public Land Bank in August 2024, 83 properties have been identified for potential housing development, paving the way to build affordable housing across the country at a pace and scale not seen in generations.”
The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement
Quick Facts
- The strengthened Canadian Mortgage Charter, announced in Budget 2024, sets out the expectations of financial institutions to ensure Canadians in mortgage hardship have access to tailored relief and to make it easier to buy a first home.
- To encourage the construction of a wide variety of much needed long-term rental housing that meets the needs of Canadians, in 2023 the federal government removed 100 per cent of GST from new purpose-built rental housing designed for long-term rental accommodation.
- The removal of GST on student residences will apply to those that begin construction on or after September 14, 2023, and before 2031, and that complete construction before 2036. Certain eligibility conditions are being relaxed for universities, public colleges, and school authorities, that operate on a not-for-profit basis to help ensure that new student residences that they provide can qualify for this additional GST relief. For-profit institutions will not be eligible for the relaxed conditions, but, like any other builder, may be eligible for the removal of GST if they provide student housing that qualifies as purpose-built housing designed for long-term accommodation.
- The removal of GST on student residences builds on the government’s reforms to allow on- and off-campus student housing projects to access the $55 billion Apartment Construction Loan Program.
- In Budget 2024, the government announced its intent to restrict the purchase and acquisition of existing single-family homes by large corporate investors.
- A key component of Canada’s Housing Plan is the new Public Lands for Homes Plan. This plan aims to partner with all orders of government, homebuilders, and housing providers to build homes, faster, on surplus and underused public lands across the country. The Public Lands for Homes Plan supports the government’s goal of unlocking 250,000 new homes by 2031.
- Budget 2024 provided $500 million, on a cash basis, to launch the new Public Lands Acquisition Fund. This fund allows the federal government to acquire more land for housing from other orders of government to help spur the construction of more homes. Work on the fund is already underway, and more details will be released soon.
- In August 2024, the Canada Public Land Bank was launched to identify and unlock underused federal properties for housing development, with an initial 56 properties made available.
- As of November 19, 2024, 83 properties are available in the Canada Public Land Bank, representing a total of 430 hectares of land, which is the size of approximately 2,700 hockey rinks or almost 525 Canadian Football League fields.
- The 12 federal properties added to the Canada Public Land Bank today are located in:
- Calgary, Alberta;
- Edmundston, New Brunswick;
- Grand Falls, New Brunswick;
- Dartmouth, Nova Scotia;
- Bracebridge, Ontario;
- London, Ontario;
- Ottawa, Ontario;
- Laval, Quebec; and,
- Whitehorse, Yukon.
Related Products
- Consultation on Removing the GST on Student Residences
- Consultation on Confronting the Financialization of Housing