(Ottawa) New fund to protect tenants, charter to guarantee their rights and improvement of their credit rating… The unveiling of the next federal budget may be in three weeks, Prime Minister Justin Trudeau decided on Wednesday to publicize some of the measures that it will contain. They go down badly in Quebec where the Legault government sees it as a new intrusion into one of its areas of jurisdiction.
Mr. Trudeau summed up the next federal budget in one word: “fairness.”
“When we look at the economy these days, it just doesn’t seem very fair,” he said. Inflation, high rents, and uncertainty here and around the world make “many people feel stuck or worse like they’re falling behind.” »
He made this announcement in Vancouver where the average rent for a 3 1/2 is more than $2,600, according to the Rentals.ca website. Its ad mainly targeted millennials and members of Generation Z “who are most likely to be renters,” the press release specifies.
Two of the three measures announced are seen as unprecedented incursions into Quebec’s areas of jurisdiction by the Legault government, which was taken by surprise.
“The reality is that people are facing a housing crisis across the country,” defended Justin Trudeau.
The idea of creating a rent register was not included in the housing law adopted in February because it was too costly. Quebec has instead chosen to strengthen clause G in leases where a landlord must indicate the lowest rent over the last 12 months.
However, Ottawa now wants to create a new Canadian charter of tenants’ rights in collaboration with the provinces and territories. Under this charter, landlords should provide “a clear history of rents for an apartment”, to allow tenants to “negotiate fairly”. He also wants a standard lease across the country.
The Trudeau government will also allocate 15 million for a new tenant protection fund to finance legal aid organizations that help them challenge rent increases deemed unfair, renovictions as well as protect them against bad landlords.
PHOTO JENNIFER GAUTHIER, REUTERS
Finance Minister and Deputy Prime Minister Chrystia Freeland’s budget is due to be tabled in the House of Commons on April 16.
The Canadian Mortgage Charter will also be amended so that rents paid on time are taken into account in the calculation of tenants’ credit score and allow them to obtain a better interest rate when they want to buy a property.
“If you can pay rent of $2,000 each month, that reassures the institutions [financières] that you can pay a mortgage every month,” said the Prime Minister.
Finance Minister and Deputy Prime Minister Chrystia Freeland’s budget is due to be tabled in the House of Commons on April 16.