Canadians Facing 'Housing Affordability Challenges' Could Get A $500 Payment From The Feds

Canadians struggling to afford a home of their own could be about to get a one-time payment from the federal government, per a plan laid out in the 2022 federal budget.

Released on April 7, the budget focuses primarily on housing affordability in Canada, as well as the climate, jobs and the rising cost of living.

In addition to announcing a number of programs and policies to make it easier for young people and first-time buyers to get on the property ladder, the government has laid out more direct support for those described as "in housing need."

This includes a new one-time payment of $500, which the feds say would go to "those facing housing affordability challenges."

Additional details about who exactly would qualify for the money was not confirmed, although $475 million is the expected cost of the support in 2022 and 2023.

According to the government, the specifics and the delivery method are to be announced at a later date.

It's one of multiple initiatives laid out in the budget to help support home buyers in Canada. Billions of dollars have been put aside for various programs, including $4 billion to launch a new Housing Accelerator Fund, with a target of creating 100,000 new housing units within five years.

The budget also outlined the new Tax-Free First Home Savings Account, which will enable prospective first-time buyers to save up to $40,000 — "tax-free in, tax-free out."

The First-Time Home Buyers’ Tax Credit amount is also set to climb to $10,000, up from $5,000.

News of the additional housing support may come as a relief to wannabe homeowners all over the country, as house prices in many regions continue to soar.

One expert told Narcity that Canada's housing market is likely to stay hot over the next five years, with serious price drops unlikely to happen any time soon.

This article's cover image was used for illustrative purposes only.