Prime Minister Justin Trudeau’s administration is taking steps to expand housing finance options for Canadian Muslims by considering the introduction of halal mortgages, which comply with Islamic laws prohibiting interest. As part of the 2024 federal budget, the government announced ongoing consultations with financial institutions and various communities to understand and address the diverse needs of Canadians aspiring to homeownership.
The budget outlines potential measures like adjustments in tax treatment and the creation of a regulatory sandbox to experiment with new financial products while ensuring strong consumer protections. This initiative is part of a broader government effort to make homeownership more accessible and equitable across different religious and cultural backgrounds.
Additionally, the budget reaffirmed Canada’s commitment to controlling the housing market by extending a ban on residential property purchases by foreign investors until January 1, 2027. This move aims to reserve more homes for Canadian residents rather than turning them into speculative investments by non-Canadians.
Deputy Prime Minister and Finance Minister Chrystia Freeland presented a housing-centric budget, which includes a projected deficit of $39.8 billion for 2024-25 and allocates $53 billion in new spending over five years, focusing on generational equity and support for Millennials and Generation Z with programs for renters and first-time home buyers. This spending is expected to be partially balanced by $18.2 billion in revenue from proposed tax fairness measures over the next five years.