Remarks by the Deputy Prime Minister on helping nearly 1 million Canadians save for their first home and results of the United States election

November 6, 2024 – Ottawa, Ontario

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Good afternoon. 

Let me start by congratulating President Trump and his team on a truly historic election victory. I and the Prime Minister and our colleagues are looking forward to working together with them. The Canada-US partnership is absolutely fundamental to the economies of both of our countries, and we have really effective experience working together with a number of US administrations and with this specific team. We have really built some enduring relationships—I would even say friendships. So, we’re looking forward to continuing to work together for the prosperity and the security of people on both sides of our shared border. 

And I do want to say, because we live so close to the United States: I know a lot of Canadians were very absorbed in the US election. I know there are a lot of Canadians who are feeling unsettled today, and I want to say to all Canadians that I am absolutely confident that Canada will be prosperous, that Canadians will be safe, and that our sovereignty—our sovereign identity—will be secure as we work with this newly elected US administration. 

I do want to just take a moment to comment on the Canadian economy. 

Inflation has been coming down; it was 1.6 per cent in September, below the middle point of the Bank of Canada’s target range. It has been within the Bank of Canada’s target range for the past nine months. It is now at a 3.5-year low. 

Interest rates have been coming down and Canada has now been the first G7 country to lower rates four times. This is real relief for Canadians. And—at the same time, we have now seen wages in Canada outpace inflation for the past 20 months. 

My announcement today is talking about an issue that is so important for Canadians, which is our Tax-Free First Home Savings Account. I think we all know that fairness for every generation is tremendously important. A cornerstone not just of our economy, but our society, is ensuring that young Canadians who want to own a home have access to that dream of homeownership. Owning your own home has been the centre of prosperity for previous generations of Canadians and also for a feeling of security and community. And it’s really important that younger Canadians can do that, too. That’s why we set up the Tax-Free First Home Savings Account. 

As you know, you can contribute $40,000 towards the purchase of your first home. It is tax-free in; it is tax-free out. And I am really happy to announce that we have now hit a milestone of nearly 1 million Tax-Free First Home Savings Accounts opened in Canada.

It’s a big deal. It’s important because it means young Canadians are taking the necessary steps to buy a first home. It also speaks about confidence in the future, and in their future. You have to actually act to open your Tax-Free First Home Savings Account. You have to put money in it, and nearly a million Canadians have done that. That to me says something really, really important about Canada and about younger generations. 

And of course, in December, other measures to help young people, especially to help young Canadians buy their first home, will come into effect. The 30-year amortization for first-time home buyers and those buying newly built homes. And we increased the value of homes that can have insurance to $1.5 million. Taken together with the direction of the policy interest rate, with the Tax-Free First Home Savings Account, we are in a situation where more Canadians, especially the younger generation, will be able to buy their first home and where we’re boosting the construction of the new homes that we need. 

Thank you very much.