February 17, 2024

Canada Takes Steps to Tackle Rising Cost of Living: New Policies for Housing and Groceries

Many newcomers to Canada dream of a fresh start, but rising costs of living can quickly turn that dream into a struggle. Recent studies reveal the harsh reality: 83% of newcomers find affordability a major obstacle, with over a third spending more than a third of their income on rent. Recognizing this critical challenge, the Canadian government has announced new policies aimed at easing the burden on both newcomers and established residents.

Housing: Helping Canadians Find a Roof Over Their Heads

The centerpiece of the plan is an additional $99 million CAD injected into the Canada Housing Benefit (CHB). This program provides direct financial assistance to low-income renters, making their homes more affordable. With this boost, the CHB now holds a total of $325 million CAD for the year, directly impacting countless Canadians through provincial and territorial support plans.

But the CHB isn't the only weapon in the government's arsenal. Other initiatives include:

  1. The $4 billion Housing Accelerator Fund: This fund incentivizes municipalities to loosen zoning restrictions and streamline housing development, aiming to add 100,000 new units in just three years.
  2. The Canadian Mortgage Charter: This framework outlines mortgage relief options for homeowners facing financial hardship, offering a safety net during difficult times.
  3. The Tax-Free Home Savings Account: This account allows first-time homebuyers to save up to $40,000 CAD for a down payment, tax-free, easing the financial burden of entering the housing market.

These measures build upon other efforts announced in the 2023 fall economic strategy, which addressed increasing the supply of affordable housing across Canada.

Beyond Housing: Making Essentials More Accessible

Beyond housing, the government is also tackling rising costs of essential items like groceries. Minister François-Phillipe Champagne announced increased research efforts to understand and address practices impacting consumer affordability:

1. Investigating Shrinkflation and Skimpflation: 

These research efforts will focus on two key practices:

Shrinkflation: Reducing product size or quantity while maintaining or increasing the price.

Skimpflation: Using cheaper ingredients to produce seemingly identical products at the same or higher price.

By understanding these practices and their impact, the government hopes to develop effective policies to protect consumers and ensure fair value for their money.

2. Supporting Consumer Advocacy: 

The government tripled funding for Canada's Contributions Program for Non-profit Consumer and Voluntary Organizations. This funding allows these organizations to conduct research and advocate for consumer rights, ensuring Canadians have a stronger voice in the marketplace.

These policies are a response to the growing cost of living in Canada, a challenge faced by many countries around the world. By addressing both immediate needs and long-term solutions, the government aims to make housing and essential items more affordable for all Canadians, particularly newcomers settling into their new life.

Looking Ahead: A Collaborative Approach

The success of these policies will hinge on collaboration between various stakeholders. The government, municipalities, businesses, and non-profit organizations all have roles to play in creating a more affordable Canada. Continued research, open dialogue, and innovative solutions will be crucial in ensuring that everyone has access to the essentials they need to thrive.

Canada Calling? Affordability No Longer a Barrier!

Migrating to Canada? Don't let rising costs hold you back! New government policies are making housing and essentials more affordable, opening doors for newcomers like you.

Pelican Migration Consultants, your trusted immigration consultants in Dubai, can help. We simplify the process, ensuring you meet eligibility and understand financial options.

Our services:

  1. Visa application guidance: Easy, error-free application process.
  2. Eligibility check: Find the perfect visa for your goals.
  3. Financial planning: Budget effectively for your Canadian life.
  4. Settlement support: Find housing, jobs, and community connections.

Make your Canadian dream a reality! Contact Pelican Migration Consultants today for a free consultation. Let's navigate your immigration journey together.