Remarks by the Deputy Prime Minister announcing 30 year amortizations for insured mortgages to put homeownership in reach for Millennials and Gen Z

July 29, 2024 - Toronto, ON

Good morning.

I would just like to start by taking a moment to express our government’s support, my personal support to everyone who has been devasted by the wildfires in Jasper. I really want to thank the first responders who are working so hard. I do want to point out that the federal government is providing matching donations to the Red Cross by Canadians to support Jasper. We are also deploying more firefighting resources to Alberta and doing everything possible to support everyone in Alberta and across Western Canada who is dealing with these truly devastating wildfires. Jasper is one of the most beautiful places on Earth. It is a part of the memories, the family photo albums of so many people in Alberta and across Canada. I think all of our hearts break when we look at those pictures.

I really just want to say first of all, to the people of Jasper, to the firefighters, you have a whole country that is with you, that is crying with you, but also working hard with you to finish putting the fires out and to rebuild.

I am also really glad to be here in Etobicoke today with my friend and colleague, the MP for Etobicoke-Lakeshore, James Maloney. As Jamie knows, I am always happy to come to Etobicoke. In fact, I spend my Saturday mornings not very far from here because my kids go to Ukrainian school in Etobicoke, so I know first hand what an amazing community it is.

And I’m glad to be here with Kelly Wilson and the team at Concert Properties, who built the amazing rental apartment building that we are standing in today.

This building and the great apartments that are here now that people are living in—and there are apartments still available for people to rent—exist in part thanks to the $73 million investment the federal government made through the Apartment Construction Loan Program.

This is one of the buildings that makes up “The Kip District.” It is an award-winning community, and it has a mix of rental apartments and condos. What is really special about this community is that it’s been thoughtfully designed so people can have a good life here. So that you are close to the subway, so that there is green space, so that there is communal space that everyone can use, like the great deck that we are on here today, with barbecues that are going to be in active use this beautiful evening.

So, I really want to say to the people at Concert Properties, thank you for your hard work building this community, thanks in advance to you and to the skilled tradespeople who are going to build those additional buildings that Kelly has talked to us about.

I want to start by talking about the Bank of Canada’s decision last week to cut interest rates for the second time in a row. Canada was the first G7 country to cut interest rates last month and we are now the first G7 country to cut rates for a second time. This is really good news for Canadians, especially for homeowners who currently have mortgages and are looking at the renewal of those mortgages, and for first-time home buyers. We are on the right path—but we know we have more hard work to do.

Interest rates are coming down because inflation is falling. Inflation in Canada fell to 2.7 per cent in June, down from 2.9 per cent in May. What that means is for six months in a row, inflation in Canada has been within the Bank of Canada’s target range. And wage growth has now outpaced inflation for 17 months in a row.

The IMF is also forecasting that Canada will be the fastest growing economy among the G7 and other advanced economies in 2025.

This is compelling economic evidence. It shows that Canada’s economy is strong and resilient. This shows that our government’s fiscally responsible economic plan is working.

Our government is focused on delivering fairness for every generation. This very much includes making the dream of homeownership a reality for younger Canadians and for new Canadians. And we know that one of the biggest hurdles to homeownership for younger Canadians is qualifying for a mortgage and making sure that you can afford the monthly payments that come with it.

That is why, in our budget in the Spring, we announced that we would be allowing 30 year amortizations on insured mortgages for first-time home buyers purchasing newly built homes, like the condos that Kelly has been talking to us about that are part of this development. That, of course, includes townhomes and condos, just like the condo that is being built right across the way from here.

And I am very pleased to announce that, starting on August 1^st—on Thursday—lenders in Canada will officially be able to offer these 30 year mortgages.

This means that 30 year mortgages will be available for applications to mortgage insurers on or after August 1st.

And it means that first-time home buyers 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 several measures that our government is taking to help younger Canadians save for that first down payment and afford a home of their own.

Our fiscally responsible plan has helped put the Bank of Canada in a position to lower interest rates for the second time in a row last week. Lower interest rates mean that mortgage payments will be more affordable, helping more Canadians get into the housing market to buy that first home of their own.

Last year, we launched the Tax-Free First Home Savings Account, to help Canadians save up to $40,000 tax-free towards the downpayment on their first home. That money is tax-free in, and tax-free out, and more than 750,000 Canadians have already started saving using the First Home Savings Account. 

At the same time, we are increasing the amount of your RRSP that you can put towards a downpayment, with a new Home Buyers’ Plan limit of $60,000. 

Our ambitious plan to build four million more homes across Canada is encouraging cities to cut red tape to make it easier to build more homes, faster.

These are all real, tangible measures that are going to help more Canadians get into the housing market and buy their first home. That’s what fairness is about.

Our government is acting now—and acting with purpose. Because Canadians are counting on us.

Thank you very much for being here today. It’s really important for me to be sure that young Canadians who are looking to buy their first home know that starting on Thursday, that new 30 year amortization kicks in. Thanks for helping us get the message out.