Canada’s House of Commons finance committee has approved the government’s $40 billion House of Representatives housing finance plan.
It also calls for an increase in federal subsidies to help lower the cost of housing for first-time home buyers.
The vote comes amid concerns the Liberals plan to raise the threshold for the new 10-per-cent house price tax from $350,000 to $600,000.
It is expected to be approved by the Senate.
House Speaker Andrew Scheer says the deal was agreed to by the federal Liberals and House of Lords.
The Liberals will introduce the legislation at their first meeting of the session next week.
“This will provide certainty for Canadians and ensure a stable and predictable housing market,” he said.
“The Liberal plan will be an important tool in the housing affordability toolkit and will be critical in ensuring that Canadians are able to get the home they want.”
The Liberals plan will provide more stability in the market.
The house sales plan would provide a $15,000 income cap for first home buyers to help offset the cost.
Home prices are expected to rise by 2.5 per cent next year and 4.5 percentage points over the next 10 years.
The plan also includes the expansion of tax breaks for first time home buyers and those who buy their first home with a loan.
The government also plans to boost incentives for those buying second homes.