Deputy Prime Minister and Minister of Finance Chrystia Freeland announced new mortgage relief measures for struggling Canadians as part of Liberal government’s 2023 Fall Economic Statement today.
“Our economic plan is about building a strong economy that works for everyone, and this Fall Economic Statement is the next phase of our plan,” Freeland stated. “With a focus on supporting the middle class and building more homes, faster, we are taking action on the priorities that matter most to Canadians today—and we will continue doing everything we can to deliver for Canadians from coast to coast to coast.”
Some highlights of the Fall fiscal update
- A new Canadian Mortgage Charter allowing temporary extensions of the amortization period for mortgage holders at risk; waiving fees and costs that would have otherwise been charged for relief measures; not requiring insured mortgage holders to requalify under the insured minimum qualifying rate when switching lenders at mortgage renewal; contacting homeowners four to six months in advance of their mortgage renewal to inform them of their renewal options; giving homeowners at risk the ability to make lump sum payments to avoid negative amortization or sell their principal residence without any prepayment penalties; and, not charging interest on interest in the event that mortgage relief measures result in a temporary period of negative amortization.
- Denial of income tax deductions for expenses incurred to earn short-term rental income, including interest expenses, in provinces and municipalities that have prohibited short-term rentals. The federal government intends to deny income tax deductions when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements. These measures would apply to deny all expenses incurred on or after January 1, 2024.
- The federal government promises to ensure that Canada’s largest grocers are keeping their commitments to stabilize prices, and is not ruling out any new measures, including possible tax measures, to support the grocery price stability that Canadians deserve.
- The government says it will work with the Canadian Transportation Agency to amend the Air Passenger Protection Regulations to ensure that airlines seat all children under the age of 14 next to their accompanying adult at no extra cost.
- Therapy and counselling play an important role in the lives and mental health care of millions of Canadians, but they can be expensive. The federal government proposes to exempt professional services rendered by psychotherapists and counselling therapists from the GST/HST.
- The 2023 Fall Economic Statement also proposes to introduce a new 15-week shareable EI adoption benefit, at an estimated cost of $48.1 million over six years, starting in 2023-24, and $12.6 million ongoing. The benefit is expected to provide approximately 1,700 Canadian families each year with additional time and flexibility as they welcome a new child in their home. Surrogate parents will also be eligible for this benefit.
- The fiscal update also commits to repurposing more federal lands to build homes on; removing the GST from new rental housing, including co-operative housing corporations that provide long-term rentals; unlocking $20 billion in low-cost financing for rental construction to build up to 30,000 more homes per year; and financing more rental housing by providing $15 billion for loans through the Apartment Construction Loan Program, to help build 30,000 new homes.
