Federal budget to include $10B housing plan, $8B for defence

As Canadians face a cost of living crunch, tackling housing affordability is going to be a main feature of Thursday's federal budget, seeing the Liberals earmark $10 billion towards this aim. The 2022 federal budget will also include a defence spending increase over multiple years, but the expected $8 billion wouldn't bring military spending up to the level many are calling for.

From moving to make it illegal for foreigners to buy any residential properties in Canada for the next two years, to rolling out a tax-free savings account for first-time buyers, the government is looking to make good on a series of 2021 Liberal campaign commitments in the 2022 budget.

Coming at a time of considerable economic and international instability, Deputy Prime Minister and Finance Minister Chrystia Freeland appears to have focused considerably in this budget on what the government can do to counter the housing crunch, the lack of inventory, and the skyrocketing prices.

While spending an estimated $10 billion over the next five years on the overall housing package, the government will also be implementing new policies meant to help increase the inventory and help those being dramatically outbid, including shutting foreign buyers out of the market.

The foreign buyers ban will apply to condos, apartments, and single residential units. Permanent residents, foreign workers, and students will be excluded from this new measure. Foreigners who are purchasing their primary residence here in Canada will be exempt.