Balancing Rentals and Homeownership through Canadian Renters’ Bill of Rights

Future of Renters Market

Recently, the federal government has proposed their strive to tackle housing affordability through the Canadian Renters’ Bill of Rights. The initiative aims to empower renters and level off the surging rental prices, sparking a debate about its potential unforeseeable impact on both future homeowners and those already grappling with the challenges of renting.

Under the Bill of Rights, Prime Minister Justin Trudeau unveiled plans to incorporate timely rental payments into individuals’ credit scores. This move the preliminary step towards assisting young renters in their journey towards homeownership, offering them a fairer chance in the market driven by real estate big tanks. Trudeau emphasised paying significant rents would reap the equity and credit score improvement.

Besides credit benefits, renters have the authorities to demand landlords to disclose history of rent so they are not ripped off by greedy homeowners who have abused the system and worsen housing affordability. This transparency empowers renters by providing them with relevant information to make informed decisions and potentially negotiate lower rental rates.

As the government looks towards measures through Legal Aid Fund, the release of a $15 millions for provincial legal aid organizations will also assist tenants in fighting landlord abuse and renovictions and thus, their tenancy is secured and protected with legal resources and representation.

Challenges in housing landscape

Experts acknowledge that while rent reporting could benefit renters on the verge of qualifying for mortgages, there are many root causes that hinder new homeownership for many young Canadians. With stagnant incomes and soaring housing prices, young Canadians are discouraged to look for anyway cheaper options to fix their budget to their dreamed homes. Promoting rent reporting is beneficial because of its financial inclusion, but only time will tell if systemic changes are necessary to address the housing crisis holistically, including vacancy rates and nationwide rent controls. Top of Form

Besides that, according to Tony Irwin, from the Federation of Rental-housing Providers of Ontario concedes the needs of cross-sectoral collaboration among policy makers, landlords, tenants, home buyers etc. to come up with the balanced regulations. Some consideration is also put on debates about the costs borne by landlords in maintaining rental properties. While recognizing the importance of tenant protections, Irwin highlights the necessity of addressing supply issues to alleviate housing pressures.

 

Source:

  1. Federal plan would count rent toward a credit score. Who will it help – and who could it hurt? – CBC News
  2. Ottawa has proposed a renters’ bill of rights. Will it help? – CBC News
  3. Fairness for Every Generation – Prime Minister of Canada –