(Courtesy: CPAC)
The federal government has announced a new “Canadian Renters’ Bill of Rights” aimed at helping renters, including credit for on-time rent payments.
On Wednesday, Prime Minister Justin Trudeau made the announcement in Vancouver. He says the new bill is part of the upcoming 2024 budget and will require landlords to disclose a history of their properties to prospective tenants to give renters a chance to bargain fairly.
“This is about protecting renters. But this is also about generational fairness – making sure Millennials and Gen Z, who are most likely to rent, get a level playing field in the rental market. This is just one of the things that we are going to be doing in this budget to build an economy that is fair for every generation,” the government said in a statement.
Another measure introduced was a new $15 million Tenant Protection Fund that will provide funding to legal aid and protect tenants against rising rent payments, renovictions and landlord abuse.
Trudeau also said the government wants renters to get credit for on-time rent payments, in order for them to benefit when it comes time to apply for a mortgage for their first home.
“We’re going to amend the Canadian Mortgage Charter and call on landlords, banks, credit bureaus, and fintech companies to make sure that rental history is taken into account in your credit score,” reads a press release
Trudeau says there are more people renting than ever before, growing at double the rate of homebuyers compared to a decade ago.
“Nearly two thirds of young Canadians rent their homes and they spend a greater share of their income on housing than other generations,” he said.
“Maybe young people want to start a family, but they don’t know how they can afford something bigger than a one-bedroom apartment,” he continued.
Some Canadians are in favour of the measures and say they will hold landlords accountable for any wrongdoing.
While some are in support, others are saying that negotiating with landlords is not the solution.
