Canada will implement a Renter’s Bill of Rights in the upcoming 2024 budget. Prime Minister Justin Trudeau recently publicized this in an announcement from Vancouver. 

Find the complete details of Canada’s new renter’s bill of rights below.

Canada will implement a renter’s bill of rights: What is it?

According to a report from the Prime Minister’s Office (PMO), the new Bill of Rights for Reneters would necessitate landlords to provide a clear and complete record of apartment pricing. 

This will help newcomers better understand the rent standards and estimate the rent they need to pay upon their arrival in Canada. It will also give them the ability to bargain for a reasonable cost. 

Moreover, the new bill will also announce the effects of renovictions and establish a nationwide standard lease agreement.

Renovictions mean when the landlords evict renters on the grounds that they need to renovate their property for a family member but later they rent it out again.

The PMO additionally revealed that individuals’ on-time rent payments will be considered in their credit scores in the future. Prime Minister Trudeau further stated that considering how expensive rent is, Canadians should be able to apply for a credit that they can use when applying for a mortgage.

Trudeau intends to alter the Canadian Mortgage Charter and urge banks, credit bureaus, landlords, and fintech businesses to consider rental history when calculating an individual’s credit score. 

This will allow newcomers to become eligible for lower mortgage rates when they intend to buy their first home.

Ultimately, the federal Government will also launch a $15 million Tenant Protection Fund. This will support legal aid organizations that help tenants avoid unfair rent hikes, renovictions, or problematic landlords.

Navigating Rental Housing in Canada as a Newcomer

In Canada, housing rents have hit new highs. As per Rentals.ca, the average requested rent for all kinds of rental property in February 2024 was $2,193. This was a 10.5% increase over the previous year.

However, it is significantly more in bigger cities in Canada. For instance, the average cost for one-bedroom apartment in Vancouver is $2,653, and $2,495 in Toronto. For reference, the average rent for a one-bedroom apartment in Canada was $1,685 in March.

Notably, when newcomers arrive in Canada, the cost of rent has a significant impact. As per December 2023 data, one in six newcomers rent their housing. In addition, as per another data released last February, more than a third of recent new immigrants spent more than one-third of their pre-tax income on rent.

Thus, the federal Government implemented various measures in 2023 to lower the financial burden on all renters in Canada. This will also assist newcomers and Canadians in paying their rent. For instance, Canada launched the Affordable Housing Fund initiative of $14 billion. This will assist in establishing new rental housing as well as the repair/ renewal of existing housing.

In addition, the Government eliminated the Goods and Services Tax (GST) as an incentive for developers. This will help develop more apartment buildings, such as student housing and senior residences.

Are you interested in immigrating to Canada but have concerns about the process and pathways? Feel free to connect with our experienced immigration experts for help at NavaImmigration. You can also send us an email at [email protected]