In recent times, the cost of living in Canada has been a pressing issue, particularly for newcomers facing Canada affordability issues. A Leger poll conducted for OMNI news highlighted that a whopping 83% of the 1,522 newcomers surveyed expressed difficulties in settling in Canada due to affordability issues. Furthermore, a Statistics Canada study paints a similar picture, revealing that more than a third of newcomers spend over a third of their pre-tax income on rent. It’s apparent that the challenges of navigating newcomers’ housing costs are significant. However, the federal government has taken steps to mitigate these challenges, promoting a more inclusive and affordable living environment.
How is the Government Addressing Housing Affordability?
Deputy Prime Minister Chrystia Freeland recently announced an injection of $99 million CAD into the Canada Housing Benefit (CHB). This move aims to ameliorate the financial pressure on low-income renters, letting them breathe a little easier when it comes to housing expenses. With this additional funding, the total amount allocated to the CHB in fiscal year 2023-2024 amounts to $325 million CAD. This means direct financial support will reach low-income renters via provincial and territorial support plans, part of a broader $4.8 billion CAD investment over eight years.
The federal government’s strategy doesn’t stop there. Several key initiatives have been launched to make housing more accessible to Canadians, inclusive of newcomers. These include:
- The $4 billion Housing Accelerator Fund: This initiative encourages municipal governments to ease zoning restrictions and ramp up the production of housing units, with a target to build an additional 100,000 new homes in the next three years.
- The Canadian Mortgage Charter: This charter outlines mortgage relief policies that banks are expected to implement. It provides crucial support to home-buyers facing financial difficulties with their mortgages.
The Tax-Free Home Savings Account: A boon for first-time home buyers, this allows them to save up to $40,000 CAD tax-free for a downpayment on their first home.
These measures are part of the government’s comprehensive strategy, articulated in 2023’s fall economic strategy, aimed at increasing the supply of affordable housing in Canada.
Tackling Groceries and Essential Goods Affordability
In tandem with housing affordability initiatives, Minister of Innovation, Science and Industry, François-Phillipe Champagne announced plans to scrutinize corporate practices possibly affecting the prices of essential goods, notably groceries. The focus is on two specific practices:
- Shrinkflation: A sneaky practice where the size or quantity of a product is reduced, but the price remains the same or even increases.
- Skimpflation: Another cost-cutting measure where cheaper, often inferior ingredients are used to produce a product, sold at the same or a higher price.
To combat these practices, the government is tripling funding to Canada’s Contributions Program for Non-profit Consumer and Voluntary Organisations. This move aims to enhance consumer protection by supporting high-quality research into these business tactics.
As the country grapples with increasing living costs, these governmental measures are designed to create a more affordable and equitable environment for all Canadians, especially newcomers. The initiatives signify a commitment to tackling Canada affordability issues head-on, promising a more inclusive future.
For those looking to make Canada their new home, staying informed about these policies and measures is crucial. Discover more about your eligibility for Canadian immigration and the available support systems at Canada’s official immigration website. By familiarizing yourself with such resources, navigating the complexities of moving to and settling in Canada can become a more manageable and less daunting endeavor.
This Article In A Nutshell:
The cost of living in Canada is a concern for newcomers. 83% face affordability issues, spending a third of income on rent. The government injects $99 million into the Canada Housing Benefit, with plans to boost affordable housing supply and crack down on unfair pricing of groceries. These initiatives aim to create a more inclusive and affordable living environment.
