Remarks by the Deputy Prime Minister on improving tax fairness for Canadians and making it easier to buy a home

June 11, 2024 - Ottawa, Ontario

Good morning.

I will speak first about our government’s action to improve tax fairness for all Canadians, the Canada Growth Fund’s newest investment, making mortgages more affordable, and the Budget Implementation Act.

Minister Fraser will then speak about our government’s bold new Housing Plan.

Finally, Minister Duclos will discuss our work to build more housing in Quebec and our plan to build homes on public lands.

Yesterday, I tabled a Notice of Ways and Means Motion in Parliament that will allow us to implement the changes to capital gains taxation. This Ways and Means Motion, and the legislation that will follow it, reflects the capital gains changes laid out in the 2024 Budget and its tax annex.

These changes will result in a small number of well-off Canadians paying a little more tax when they sell a successful investment.

In turn, that revenue will pay for investments that will help all Canadians, especially our younger generations.

It will help fund our plan to build more homes, faster, so more younger Canadians can achieve the dream of home ownership.

And it will help make life cost less for Canadians.

Now, Canada could finance these critical investments by taking on more debt. But that would place an unfair burden on younger generations.

Fiscal responsibility matters – and our fiscally responsible approach is how we can afford to make the investments Canada needs and create the good jobs Canadians need.

Our responsible approach also helped create the conditions that made it possible for the Bank of Canada to lower interest rates. Last week, Canada was the first country in the G7 to lower interest rates.

I now want to speak about an important investment, the newest investment and second carbon contract for difference by the Canada Growth Fund, which I am announcing this morning.

The Canada Growth Fund announced its partnership with Varme Energy—an Edmonton-based company whose innovative carbon capture technology will produce clean electricity from waste that is diverted from landfills. This technology will help lower home energy costs while creating well-paying jobs for workers across Alberta.

The Canada Growth Fund is a key pillar of our economic plan that will create jobs, boost investor confidence, and drive economic growth, all while it is fighting climate change.

Before I pass it over to Minister Fraser to speak more about housing, I wanted to touch on a point I made earlier in my remarks about helping younger Canadians become homeowners.

Our government knows that one of the biggest hurdles to homeownership for younger Canadians is qualifying for a mortgage and ensuring you can make the payments that come with it.

That is why, in our budget, we announced new enhancements to the Canadian Mortgage Charter.

The Charter details the tailored mortgage relief that Canadians can expect from their banks if they are in a challenging financial situation.

To restore generational fairness in the housing market, our government is strengthening the Canadian Mortgage Charter with new measures to unlock pathways for younger Canadians to get the keys to their first home.

Effective August 1st this year, we are allowing 30 year amortizations on insured mortgages for first-time home buyers purchasing newly built homes—including condos and townhouses.

And today, our government is releasing guidance for lenders to enable them to offer 30 year mortgage amortizations.

This means that first-time home buyers purchasing newly-built homes will now have 30 years to pay off their mortgage instead of 25 years. That translates to lower monthly payments—so more younger Canadians can afford to pay that monthly mortgage on a new home.

This is just one of the many bold new measures our government is taking through our 2024 budget to make the dream of homeownership a reality for younger Canadians.

And it is why I am urging my fellow Parliamentarians to pass the Budget Implementation Act as soon as possible—because Canadians are counting on us. The bill will deliver vital budget measures that will secure fairness for every generation and grow the economy in a way that is shared by all.

Our government is acting now – and acting with purpose – with a fiscally responsible economic plan.

We know that young people are counting on us. And we won’t leave them behind.

Thank you. I will now pass it over to Minister Fraser.