Housing prices have been on the rise in Canada for the past decade and as most millennials know, home buying has become almost impossible for much of our generation. The Trudeau government announced that in Tuesday's federal budget they will finally be focusing on making home buying more affordable, especially for millennials.
According to CTV News, Finance Minister Bill Morneau has made a promise that this budget will mainly focus on how home ownership can become more affordable for millennials.
This budget will address key issues on housing-related supply, demand, and government regulations. Being released so close to the upcoming election, this budget can also be expected to grab a lot of attention.
Although no in-depth details have been released yet on how this promise will be kept, founder of Generation Squeeze, Paul Kershaw, hints at the types of changes that the Federal Government could be making to ensure that millennials can become homeowners in the future years.
Some of the changes that could be implemented are bumping up the one-time withdrawal limit up to $25,000 in order to make it more plausible for millennials to be able to afford the first downpayment that many struggle with.
Kershaw also states that the Federal Government could also increase the $5,000 first time homebuyer tax credit, which could result in $750 worth of tax relief for some home buyers.
Regardless, the promise of any efforts being made to the overdue housing crisis is music to millennial's ears.
This year, housing prices have continued to rise. According to The Canadian Real Estate Association, the average price for a house in the Greater Toronto Area is over $760,000.
While in the Greater Vancouver area it gets even worse. Those looking to settle down in Vancouver can expect to pay over $1,000,000 for any form of homeownership.
Morneau has been collecting recommendations about making homeownership more affordable from a variety of experts, including mortgage experts and academics and will announce his final decisions in the budget this Tuesday.
Until then, millennials can finally focus on the fact that they may not have to live that rent life forever.
Source: CTV News