Sean Kilpatrick The Canadian Press “Inflation is falling and wages are rising. And private sector economists now predict that Canada will avoid the post-pandemic recession that many people predicted,” says Finance Minister Chrystia Freeland.
Finance Minister Chrystia Freeland presented her fall economic statement on Tuesday afternoon, along with some measures targeting the “middle class”, at “a time when certain prices remain high », starting with those of housing. Highlights.
New expenses
The fall economic statement projects net new spending of $13.2 billion over six years. By taking her foot off the spending pedal, Ms. Freeland says she is ensuring “that Canada's finances remain viable.”
Short-term landlords in the sights
< p>No more tax deductions for expenses — mortgage interest, cable and Internet bills, property insurance, condo fees, property taxes and capital cost allowance — of operators of short-term rental housing in the provinces and municipalities where this activity is prohibited.
Owners who have not “properly registered” their home intended for short-term rental with the authorities while leaving it on a short-term rental platform such as Airbnb will also have to do without tax deductions.
Ottawa is convinced that this turn of the screw “will strongly encourage operators of housing used for non-compliant short-term rentals to return these properties to the long-term housing market.” “These companies are preventing too much housing from being available for our communities,” Ms. Freeland said at a press briefing.
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The government also plans to pay $50 million from 2024-2025 to 2027-2028 to “help” municipalities enforce planned restrictions on short-term rentals… and “promote a return to the housing market in long-term short-term rentals.”
Even more accommodation
The Trudeau government is adding $15 billion to the Apartment Construction Loan Program, which will support builders to build more than 30,000 new homes by 2032; and $1 billion in the Affordable Housing Fund, which will help nonprofit, co-op and public housing developers build more than 7,000 apartments by 2028.
The federal government will eliminate the imposition of the goods and services tax (GST) on new cooperative housing projects built specifically for long-term rental, in addition to investing $309.3 million in the development program housing cooperatives.
The Canadian mortgage charter
The Canadian government outlines, in a “new” mortgage charter, its expectations for towards financial institutions, such as “collaborating” with their customers experiencing financial difficulties by offering them “tailored relief” and “reasonable payments”.
Canadians can expect financial institutions to:
- allow temporary extensions of the amortization period for subprime mortgage holders;
- waive fees and costs that would otherwise have been charged for the relief measures;
- do not require insured mortgage holders to re-establish their eligibility under the minimum insured eligibility rate when changing lenders at loan renewal;
- communicate with homeowners four to six months before their mortgage renewal to inform them of their renewal options;
- give at-risk homeowners the option to make lump sum payments to avoid negative amortization or sell their principal residence without prepayment penalties;
- do not charge interest on interest in the event that mortgage relief measures result in a temporary period of negative amortization.
The Minister of Finance is confident that the reminder These measures will help more people “overcome the temporary financial stress caused by rising interest rates and allow them to keep their homes.”
Eliminate GST on therapy services
Chrystia Freeland will eliminate the GST on professional services rendered by psychotherapists and counseling therapists. “To ensure that Canadians can receive the help they need, the federal government is taking the necessary measures,” indicates the ministry.
A new benefit for adoption
The economic and financial update provides new benefits for adoptive parents. New parents are now entitled to 15 weeks of maternity benefits, which can be shared. Adoptive parents were previously entitled to employment insurance parental benefits, but not to the 15 weeks of maternity benefits. The measure would cost the government approximately $48.1 million over six years starting in 2023-24 — and $12.6 million per year thereafter. “This benefit is expected to give approximately 1,700 Canadian families more time and flexibility each year when welcoming a new child,” it reads. Substitute parents will also be eligible for this benefit.
Those aged 13 and under with their parents on a plane
Ottawa wants to force airlines to place all children 13 and under next to their accompanying adult at no additional cost. He is ready to amend the Air Passenger Protection Regulations accordingly.
A right to compensation
The federal government will also amend the Competition Act to once and for all prevent manufacturers from “anti-competitively” refusing to “provide the means of repairing” devices of all kinds such as household appliances, garden tools or electronic products. .
“Throwing away these valuable goods wastes money and creates more unnecessary waste for landfills” … And “people across the country are frustrated,” we read in the fall economic statement.
More competition
The government will work to strengthen the Competition Bureau so it can “crack down on abuses by big companies in a dominant position, including when they aim to prevent the entry of competitors into the market, in particular by establishing unreasonably low prices”, promises Chrystia Freeland.
Des tight spending
Calling itself “effective,” the Liberal government has identified additional potential savings of $345.6 million in 2025-2026, then $691 million per year thereafter, to be made by departments and agencies.
A recession avoided?
Canada will experience the strongest economic growth in the G7 next year, maintains Justin Trudeau's team, pointing to forecasts from the International Monetary Fund. “Inflation is going down and wages are going up. And private sector economists now predict that Canada will avoid the post-pandemic recession that many predicted,” said Minister Freeland.
“Disgusting” and “disconnected” ?
The economic statement is “disgusting”, “ignores the emergencies facing Quebecers” and is “disconnected from reality”, respectively said the Conservative leaders, Pierre Poilievre, Bloc, Yves- François Blanchet, and New Democrat, Jagmeet Singh.