Chapter 1: 
Reducing Everyday Costs

Since 2015, we have taken action to make life cost less, so every generation has a fair chance to succeed. We have introduced landmark social programs that invest in Canadians through every stage of life. These programs leave Canadians with more money in their pockets and more savings for their household budgets.

This includes making transformative investments to expand Canada's social safety net and reduce the costs of essentials like child care, dental care, and prescription medications including insulin and contraceptives. We're investing $200 billion over 10 years to improve Canada's universal public health care system, to shorten wait times, and attract more family doctors. The federal government has increased its support for health care and social services, more quickly than the provinces and territories, and it calls on those governments to step up with what's needed to improve services for Canadians, faster.

Already, 3 million Canadians, mostly children and seniors, are signed up and on track to save about $730 in their first year of dental coverage. And 1 million Canadians have already had their dental visits covered. By next year, up to 9 million uninsured Canadians will be covered by the Canadian Dental Care Plan.

With generous monthly Canada Child Benefit payments, the government now covers up to the first $8,000 in child expenses every year, to help all parents afford the essentials their kids need.

Students benefit from interest-free Canada Student Loans and increased Canada Student Grants of up to $4,200 per year—over twice as generous compared to a decade ago.

Seniors have the security of well-funded pensions and retirement benefits: a single senior age 75 and up would receive a maximum Old Age Security and the Guaranteed Income Supplement of $22,352 in 2024 ($21,490 for single seniors 65 to 74), up almost 40 per cent from the $15,990 available in 2015.

We're putting more money in the pockets of Canadians at every stage of life, from childhood, into adulthood, and onto retirement. We've implemented generous new support to top-up the wages of full-time, minimum wage workers through the Canada Workers Benefit, which delivers up to $2,739 to a working family in 2024.

Our generational transformation of Canada's social safety net means more Canadians today have better, more comprehensive health care—now including dental care and pharmacare—reducing out-of-pocket costs.

Making significant investments that improve Canadians' health and quality of life is not just good social policy, it is good economic policy. The government is putting more money back in the pockets of workers and working families, so they can save for their future—whether that is buying their first home, paying off their mortgage, or saving for their child's education.

These investments will deliver returns for Canadians. Investments in the Canadian Dental Care Plan will meaningfully reduce the $1.8 billion spent by Canada's public health care system each year to treat dental health emergencies. Our $10-a-day child care system is benefitting nearly 1 million children, with some families saving up to $14,300 per child, per year.

$13,800 for a Family with Two Young Children in 2024

Richard and Susan have two children under six in $10-a-day child care in Newfoundland and Labrador. With household income of $80,000, they could receive about $13,800 in savings and additional benefits in 2024, as a result of reduced child care costs, the Canada Child Benefit, and Canadian Dental Care Plan savings for their two children.

Once Richard and Susan become eligible for the Canadian Dental Care Plan in 2025, the family could save about an additional $900 in dental care costs.

$19,500 for a Multi-Generational Household in 2024

A multi-generational household living in Ontario with two parents, two university students, one with a disability, and two grandparents, both older than 75, could receive about $19,500 in savings and additional benefitsin 2024, with more support coming soon:

• About $15,200 for the two parents with employment income of $55,000, and two adult children who attend university full-time, one with a disability. These additional benefits are a result of the enhancements to Canada Student Loans and Grants, the Canadian Dental Care Plan, and the Canada Workers Benefit.
• About $4,300 for the two grandparents, with income of $52,000 in 2024, as a result of the 10 per cent increase in Old Age Security benefits for seniors 75 and older, and the Canadian Dental Care Plan.

Once both the parents and the student without a disability become eligible for the Canadian Dental Care Plan in 2025, the family could save about an additional $2,500 in dental care costs. Additionally, once the student with a disability begins receiving the Canada Disability Benefit, the family would benefit from an additional $2,400 between July 2025 and July 2026.

Underpinning Canada's transformed social safety net are record federal investments. In 2025-26, the federal government will invest almost $140 billion in a number of key social programs and benefits, compared to just $68 billion in 2015-16, when Canadians didn't have access to some of these essential benefits. Moreover, the federal government is providing nearly $69 billion in 2024-25 to fund the social services run by provinces and territories through the Canada Health Transfer and the Canada Social Transfer.

Alongside a stronger social safety net, Canadians also need more affordable homes. Earlier this year, in Budget 2024 and Canada's Housing Plan, the government kickstarted a Team Canada effort to build 4 million homes and make housing more affordable. The 2024 Fall Economic Statement outlines the progress the government is delivering on these commitments and introduces new measures to build more homes and reduce the costs of homeownership and rent for Canadians.

Since this spring, the government has delivered new action to protect renters, make mortgages more affordable, cut red tape, and balance the pace of immigration with the supply of homes.

Our work is already improving the housing market.

The government's fiscally responsible economic plan has enabled the Bank of Canada's work to get inflation back within target and to lead the global rate cutting cycle with five interest rate cuts this year. Lower interest rates provide much-needed relief on monthly mortgage payments. For every 0.25 per cent interest rate cut from the Bank of Canada, a variable rate mortgage holder in Toronto or Vancouver, with an average priced home, will save nearly $2,000 every year. Further, these interest rate cuts are also helping homebuilders access cheaper financing to build more homes.

In addition, we're bringing down costs for everyday purchases so more Canadians can save and invest in a home. These savings come through lower bank fees, fewer hidden fees, cheaper cell phone plans, and new tax-free accounts like the Tax-Free First Home Savings Account, which is already helping nearly 1 million Canadians save for their first downpayment. The federal government's actions are already delivering results for Canadians. Housing starts are above pre-pandemic levels and some recent data suggest that asking rents for new leases are starting to decline in major cities following a very large increase in the preceding three years.

But we can't stop here. We've put in place the building blocks needed to bring down the cost of housing and everyday essentials. We're helping the middle class keep more of their paycheques. We're reducing everyday costs for Canadians, and as detailed in Chapter 2, we're investing in promising industries that will bring higher wages and more good jobs. By reducing daily expenses for Canadians, while also investing to raise wages, we are building a fairer Canada where every generation can succeed.

1.1 More Money in Your Pocket

Since 2015, we have taken action to make life cost less and put more money in your pocket. This includes investing in a Canada-wide system of $10-a-day child care; providing dental coverage for 3 million previously uninsured Canadians, with up to 9 million to be covered by 2025; introducing the Canada Disability Benefit; strengthening the Canada Pension Plan; and increasing Old Age Security benefits for seniors 75 and over.

The 2024 Fall Economic Statement is building on this work with further action to provide relief from the rising cost of living. Efforts to reduce everyday costs include a tax break for all Canadians, cracking down on the hidden fees that make everyday purchases more expensive, making banking more affordable, strengthening competition—especially in the grocery sector, delivering the Canada Carbon Rebate's 20 per cent rural top-up to more rural Canadians, and ensuring Canada Disability Benefit recipients do not see their other benefits reduced. All of this work is part of our economic plan to help the middle class keep more of their money in their pockets.

A Tax Break for All Canadians

The government can't set prices at the checkout, but we can give Canadians more money in their pockets. To help them buy the things they need and save for the things they want, on November 27, 2024, the federal government introduced the Tax Break for All Canadians Act, which has now received Royal Assent. The Act provides a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for holiday essentials, like groceries, restaurant meals, drinks, snacks, children's clothing, and gifts.

From December 14, 2024, to February 15, 2025, the Tax Break for All Canadians Act will provide real relief at the cash register by making the following items tax-free:

• Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches;
• Restaurant meals, whether dine-in, takeout, or delivery;
• Snacks, including chips, candy, and granola bars;
• Beer, wine, and cider;
• Pre-mixed alcoholic beverages of not more than 7 per cent ABV;
• Children's clothing and footwear, car seats, and diapers;
• Children's toys, such as board games, dolls, and video game consoles;
• Books, print newspapers, and puzzles for all ages; and,
• Christmas trees and similar decorative trees.

Removing the GST/HST from these qualifying goods for two months will provide an estimated $1.6 billion in federal tax relief in 2024-25.

Savings up to $300 on $2,000 of Holiday Essentials

A family spending $2,000 on qualifying goods, such as children's clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals would realize GST savings of $100 over the two-month period.

In provinces where the provincial portion is now removed from qualifying goods, savings will be realized. For example, a $2,000 basket of qualifying purchases would realize HST savings of up to $260 in Ontario and up to $300 in Newfoundland and Labrador.

$10-a-day Child Care

Since its launch in Budget 2021, the federal government's Canada-wide system of $10-a-day child care has delivered real results to put more money in the pockets of middle class families and help more parents, especially mothers, have a career, as well as a family. We've since achieved several key milestones:

• As of April 1, 2024, eight provinces and territories have reduced regulated child care fees to an average of $10-a-day or less, significantly ahead of schedule, and all other provinces have reduced fees by 50 per cent.
• In Quebec, which has been a leader in affordable child care since 1997, federal investments are creating more than 30,000 new spaces.
• As of September 2024, the federal government has created, or funded the upcoming creation of, 125,000 new $10-a-day child care spaces. We are on track to reach our goal of 250,000 new affordable spaces by March 2026, a 27 per cent increase in the number of regulated spaces since 2021.
• Created 35,000 affordable spaces for Indigenous child care, across 463 sites in First Nations and Inuit communities, 341 Aboriginal Head Start on Reserve programs, and 134 Aboriginal Head Start in Urban and Northern Communities programs.

In total, since 2021, the federal government has committed more than $34.2 billion, with another $9.2 billion ongoing for affordable child care. Now it's time for provinces and territories to deliver on their end of the deal.

Building on this success, Budget 2024 established the Child Care Expansion Loan Program, and increased training for early childhood educators, to create even more child care spaces and help even more families benefit. Because parents, especially mothers, shouldn't have to choose between raising a family or having a career, no matter where they live.

Budget 2024 also announced that early childhood educators working in rural and remote communities will be able to have a portion of their Canada Student Loans forgiven. Royal Assent of legislation in spring 2024 has enabled ongoing work to amend regulations, towards standing up loan forgiveness for rural early childhood educators by fall 2025.

Increasing Young Families' Incomes

Our investments in $10-a-day child care are already showing results, supporting Canadians and Canada's long-term prosperity and helping more mothers participate in the workforce. Between 2014 and 2023, the labour force participation gap between mothers and the total population fell from 12 percentage points to 9 percentage points. This increased Canada's advantage relative to the gap in the United States to 5 percentage points.

More Generous Canada Carbon Rebate Rural Top-Ups

The Canada Carbon Rebate, worth up to $1,800 for an urban family of four in 2024-25, returns fuel charge proceeds directly to Canadians in provinces where the fuel charge applies. With the 20 per cent rural top-up, a rural family of four receives up to an additional $360 for a total of up to $2,160.

Rural Canadians receive this additional supplement to their Canada Carbon Rebate in recognition of the fact that living in rural areas and small communities often means spending more money on gas to travel longer distances, limited access to alternative transportation options, and other increased energy needs. That's why the rural top-up doubled from 10 per cent to 20 per cent starting April 2024.

The rural top-up is generally available to those living outside a Census Metropolitan Area (CMA). However, due to how CMAs are laid out, not all rural Canadians are receiving the rural top-ups they should be getting. To expand eligibility for the rural top-up to more Canadians, in Budget 2024, the government committed to expanding eligibility by better defining rural areas.

• The 2024 Fall Economic Statement announces the government's intent to amend the Income Tax Act to deliver the Canada Carbon Rebate rural top-up to more Canadians by making those living in census rural areas and small population centres that are within CMAs eligible, starting in April 2025. With this change, 1.6 million more Canadians will receive the 20 per cent rural top-up next year.

20 Per Cent More for More Rural Canadians

Jim, Sharon, and their two children reside in Neebing, Ontario, a small municipality which is part of the Thunder Bay Census Metropolitan Area. In 2024-25, their family is receiving $280 every three months in base Canada Carbon Rebate amounts, for a total of $1,120. Because Neebing is considered a census rural area, Jim and Sharon's family would become newly eligible for the rural top-up, which would provide them an additional 20 per cent of their base rebate amount, starting in April 2025.

Stronger Competition to Lower Prices

Stronger competition leads to lower prices and improved services for consumers, as well as more innovation in the marketplace.

Over the past year alone,the federal government has made the most significant reforms to competition and anti-trust law in decades, which will help:

• Put an end to big businesses, including grocers, leveraging contracts and leases to stifle competition;
• Stop anti-competitive mergers that raise prices and limit choices for Canadians;
• Crack down on anti-competitive practices by large dominant companies that drive up prices;
• Improve the focus on worker impacts in competition analysis; and,
• Prevent manufacturers from refusing to provide the means to repair devices in an anti-competitive manner.

Cracking Down on Hidden Fees

To better protect consumers in Canada, the federal government has taken significant strides to prevent deceptive advertising and to direct federal agencies to increase protections against hidden fees. These ongoing efforts will lower fees for Canadians, with more reductions underway. This work includes:

• Enforcing the strengthened Competition Act and defending Canadians against hidden fees: In September 2024, the Competition Tribunal ruled in favour of the Competition Bureau application against Cineplex online booking fees constituting drip pricing. As a result, Cineplex has been ordered to pay a financial penalty of over $38.9 million.
• Prohibiting a range of telecom fees: The Canadian Radio-television and Telecommunications Commission (CRTC) is implementing Budget 2024 amendments to the Telecommunications Act to prohibit extra fees for switching carriers, require carriers to notify consumers about available plans at the end of their contracts, and require carriers to provide a self-service option so consumers can easily change or cancel their services. This work is expected to conclude in 2025. The CRTC will also consult on its consumer codes to strengthen consumer protections, harmonize protections, and empower consumers in dealings with telecom companies.
• Increasing transparency for phone plan prices: Earlier this year, the CRTC announced action to crack down on telecom carriers that are not being transparent with Canadians on the true costs of their phone plans. The CRTC demanded carriers demonstrate how they will provide affordable international roaming plans, and offer full transparency to customers on any price increases—so there are no surprises when your cell phone bill comes due.
• Capping non-sufficient fund fees: The government is in the process of capping non-sufficient funds fees charged by banks. Proposed regulations were published in the Canada Gazette, Part I on November 16, 2024, for a consultation period of 30 days, ending on December 16, 2024. Once comments from Canadians are received, the government will publish the final regulations in the coming months.
• Free family seat assignments on airplanes: The government is preparing to introduce amendments to the Air Passenger Protection Regulations in the near future to mandate airlines to seat all children under the age of 14 next to their accompanying adult at no extra cost.
• Increasing airline fee transparency: Efforts are underway with the Canadian Transportation Agency and the aviation industry to increase the transparency of air carriers' optional fees, such as for checked and carry-on bags, meals, seat selection, and in-flight entertainment. This could include ensuring booking platforms provide fee transparency early in the booking process.

The federal government is calling upon provinces and territories to crack down on the hidden fees that fall under their respective jurisdictions, given their jurisdiction over many areas of consumer protection, such as concert or sport tickets. A Team Canada approach is required to crack down on the unfair practices, such as the malicious actors causing sky-high resale prices on Ticketmaster or StubHub.

Strengthening Local Food Supply Chains

All Canadians should have access to affordable, healthy, locally-grown food. This is particularly critical for the Canadian households who are facing food insecurity, and especially important for vulnerable populations, such as low-income families.

To improve food security and strengthen local food supply chains, the government launched the Local Food Infrastructure Fund, currently in its second phase, and the new School Food Infrastructure Fund, as part of a $62.9 million initiative announced in Budget 2024. Both Funds build on Budget 2024's launch of the $1 billion National School Food Program, which will ensure 400,000 more children have the healthy meals they need to succeed.

Through the Local Food Infrastructure Fund, the government is supporting communities to build the physical infrastructure needed for local food production, such as building community gardens and greenhouses. This Fund is also helping communities purchase equipment to process, distribute, store, and transport food to market. Since its launch in 2019, the Local Food Infrastructure Fund has invested over $65 million in more than 1,100 projects across Canada.

The new School Food Infrastructure Fund is helping community organizations deliver school food programming by investing in infrastructure and equipment that increases capacity for producing, processing, storing, and distributing food to schools. For example, this funding could be used to upgrade centralized kitchens and increase the number of meals served, using food grown in a local community.

Implementing Consumer-Driven Banking

To equip Canadians with the latest innovative tools for finance and banking, the government announced Canada's Consumer-Driven Banking Framework in Budget 2024, and passed the Consumer-Driven Banking Act in June 2024. The Act included the foundational elements of scope and technical standards, and designated the Financial Consumer Agency of Canada (FCAC) as the lead agency.

A key priority of Canada's Consumer-Driven Banking Framework is the safe and secure sharing of the financial data of Canadians and small businesses.

For example, the Consumer-Driven Banking Framework will allow renters to safely and securely share their on-time rent payment history to improve their credit score, in turn, making it easier to qualify for a mortgage, perhaps even at a lower interest rate. Furthermore, the Framework will enable the development of better budgeting tools and apps, so Canadians can better manage their expenses, stay on budget, and improve their financial situation.

• The 2024 Fall Economic Statement announces the government's intent to introduce legislation for the remaining elements of Canada's Consumer-Driven Banking Framework, including accreditation and common rules. This legislation would:

  • Enable the Minister of Finance to designate a provincial or territorial authority to supervise certain provisions on an identified institution or class of institutions when certain conditions are met;
  • Establish a permanent federal, provincial, and territorial advisory committee, to inform the Senior Deputy Commissioner of FCAC's work on administering and implementing the Consumer-Driven Banking Framework; and,
  • Ensure robust national security oversight of the Framework and protect Canadians' financial information from hostile actors.
• The 2024 Fall Economic Statement also announces the government's commitment to launch Canada's Consumer-Driven Banking Framework in early 2026.
• Through the 2024 Fall Economic Statement the government proposes to provide FCAC with $44.3 million over three years, beginning in 2025-26, on a cash basis, to implement the Consumer-Driven Banking Framework, including to develop a consumer awareness campaign on consumer-driven banking and to create a public registry of the banks, credit unions, financial technology, and other financial services providers participating in the framework.

Credit for On-Time Rent Makes it Easier to Get a Mortgage

Fatima and Ahmed, a young couple from Vancouver, have been renting an apartment for three years while saving for their first home. They consistently pay their rent on-time each month, but do not have sufficient credit scores to qualify for a mortgage. Once consumer-driven banking is fully launched, Fatima and Ahmed will be able to safely and securely report their rent payment history to the credit bureaus to improve their credit scores. This will help them secure a mortgage to buy their first home, maybe even at a lower rate.

New Tools to Help with Budgeting

Nina, a recent university graduate, is focused on paying off her interest-free Canada Student Loans and her student line of credit. While she has made progress in paying off her debt, it has been difficult to get a clear picture of her overall financial situation. Once operational, Nina will be able to use new, innovative tools to opt-in to securely share her bank account balance and transaction data with an accredited budgeting app.

This will help Nina build an accurate budget, accurately track her spending, and be notified when she is spending beyond her budget, so she can refocus her spending on her goal—paying off her student loans. With better access to her financial information, Nina will have the tools to stay on track with her budget, save interest on her student line of credit, and get out of debt faster.

Better Low-Cost and No-Cost Bank Accounts

The federal government and the Financial Consumer Agency of Canada (FCAC) have negotiated modernized low-cost and no-cost account agreements with Canada's largest banks. These modernized agreements enhance the existing, outdated agreements by providing more online banking features. These new agreements maintain the existing account fees of $4 per month, for accounts available to all Canadians, and of $0 per month, now available to more groups.

For both $0 and $4 accounts, the new agreements increase the number of included free monthly debit transactions by 50 per cent—from 12 to 18—and now includes free modern payment methods, namely Interac e-transfers.

Eligibility for the $0 per month account is now available to more groups, including permanent residents, refugees, and temporary residents during their first year in Canada. In addition, banks that have signed on to the modernized agreements will need to extend $0 eligibility to at least one of the following groups:

• Indigenous people;
• People eligible for the Disability Tax Credit certificate; or,
• Social assistance recipients from select provincial or territorial programs.

As of today, at least thirteen banks, including Canada's six largest banks, have signed on to the commitment. Banks that sign on to the commitment will begin offering modernized $0 and $4 accounts by December 1, 2025. FCAC will monitor banks' compliance with the new agreements.

Making Automatic Tax Filing a Reality

Nearly 20 per cent of Canadians with an income below $20,000 do not file a tax return. They are therefore not receiving many significant federal benefits they are eligible for, such as the Canada Child Benefit and the GST Credit. The government wants to help Canadians with the cost of living by ensuring they get the benefits to which they are entitled.

The Canada Revenue Agency (CRA) is working to make tax filing easier. This includes through the SimpleFile by Phone program, which invites Canadians to call in to answer a few brief questions and provide consent to automatically file an accurate tax return on their behalf. As committed in Budget 2023, SimpleFile by Phone will reach 2 million Canadians by 2025.

In February 2024, the CRA increased the number of previously planned, initial invitations for SimpleFile by Phone from 700,000 to over 1.5 million Canadians. As of November 3, 2024, 93 per cent of invitees had filed a tax return and are receiving $3 billion in benefits and credit payments, including:

• More than $1.4 billion in Canada Child Benefit payments;
• A little over $115 million in Canada Workers Benefit payments;
• About $490 million in GST Credit payments;
• Nearly $451 million in Canada Carbon Rebate payments; and,
• Over $535 million in provincial and territorial benefits issued by the CRA.

As part of the Budget 2023 commitments, the CRA also piloted a new national automatic tax filing service for lower-income individuals who have never filed a tax return or who have a gap in their filing history. In addition to not filing, tax filing gaps result in many Canadians not receiving their benefit payments.

While these programs have seen initial success, it is time for Canada to accelerate modernization of how Canadians file their taxes and make needlessly complicated and costly tax filing services a thing of the past. Many countries have already pursued full-scale automatic tax filing and the federal government is launching the second phase of its work to move Canada towards broad-based automatic tax filing.

• To implement automatic tax filing, the 2024 Fall Economic Statement announces that the government is:

  • Developing legislation to allow the CRA to automatically file a tax return on behalf of certain lower-income Canadians using the information it has available, beginning as soon as the 2025 tax year. Eligible Canadians would receive a pre-filled tax return based on CRA data, and be invited to review and modify their information as necessary, or to opt-out of the automated filing process. If eligible Canadians do not opt out, the tax return would be filed on their behalf by the CRA, thereby helping more Canadians receive their benefits. Every effort will be taken to ensure that people have the opportunity to modify or opt-out as they choose.
  • Exploring expanding automatic tax filing to middle class Canadians with simple tax situations. This could include, for example, non-filers or those with a gap in their filing history and who do not claim most deductions and credits. It could also include a modest-income family who does not have the funds for a paid tax filing service.
  • Considering options for improving the availability of free online tax software for Canadians, as it is often not necessary to pay a tax preparer or an online service to file taxes, especially for those with simple and straightforward tax situations.
  • Proposing to amend the Canada Revenue Agency Act to provide that the Minister of National Revenue's responsibilities include advancing the simplification and automation of individual tax filing in Canada.

Putting More Money in More Canadians' Pockets

Jonathan is a single dad with two young children, renting an apartment in Sault Ste. Marie, and earning $15,000 from his part-time job. He has never filed a tax return, which means he is missing out on generous federal, and possibly provincial, benefits such as the Canada Child Benefit, Canada Workers Benefit, Canada Carbon Rebate, GST Credit, Ontario Child Benefit, Ontario Trillium Benefit, and possibly other benefits that would put more money in his pocket.

With automatic tax filing, Jonathan would receive a pre-filled tax return from the CRA and be invited to file using a simplified filing method. By providing a few details, such as his rent payments, the CRA can ensure he receives all benefits to which he is entitled. If he does not respond, the CRA would use the information it has in his tax file to complete and file a tax return on his behalf.

After filing his taxes for the first time, with the help of the CRA, Jonathan receives around $27,000 in benefit payments.

Using the CRA's new automated and free process, he could save up to $100 by not having to file his return with a tax preparation company.

The CRA has established an advisory group that will provide feedback and guidance on the path forward for automatic tax filing, and the government will consult with Canadians and Indigenous partners to ensure implementation enables more Canadians to receive the benefits to which they are entitled. Throughout the development of automatic tax filing, ensuring Canadians' ability to opt-out of the CRA filing on their behalf will remain a central focus.

Cracking Down on Predatory Lending

Predatory lenders can take advantage of the most vulnerable Canadians by charging high interest and repayment rates to keep borrowers in a cycle of debt. These high-interest loans, which accelerate debt cycles, are disproportionately accessed by low-income Canadians, newcomers, and those with limited credit history.

To protect financially at-risk Canadians, the government has taken a series of actions to crack down on predatory lenders. Budget 2023 announced that the government would lower the criminal rate of interest, from the equivalent of a 48 per cent annual percentage rate (APR) to 35 per cent APR and cap the costs of a payday loan at no more than $14 per $100 borrowed. These changes come into effect on January 1, 2025.

The government furthered its crack down on predatory lending in Budget 2024 by enhancing enforcement of the criminal rate of interest through amendments to the Criminal Code. Budget 2024 also announced the launch of the federal government's work with provinces and territories to harmonize and enhance consumer protections across Canada.

Credit insurance, when offered in connection with a payday loan, can add to the already high costs of the loan, often with little benefit to the consumer. Some provinces already prohibit the sale of credit insurance in connection with a payday loan and have identified this as a best practice. In August 2024, the government held consultations on several proposed amendments to the Criminal Code, including on prohibiting the sale of credit insurance in connection with a payday loan, and on requiring a minimum repayment term on payday loans of 42 days and for lenders to accept payment in installments.

• To protect vulnerable Canadians, the 2024 Fall Economic Statement announces the government's intent to amend the payday lending exemption in the Criminal Code to prohibit the sale of credit insurance products in connection with a payday loan.
• To make repayment schedules more manageable and lower default risks, the 2024 Fall Economic Statement also announces the government's intent to make amendments to the payday lending exemption within the Criminal Code requiring a minimum term on payday loans of 42 days and for lenders to accept payment in installments. The government will provide 12 months for industry to transition to the new conditions.

Penalizing Predatory Debt Advisors

Canadians who experience difficult financial situations and take on excessive debt expect and deserve trustworthy financial advice from debt advisors.

However, unlicensed debt advisors, also known as lead generators, often deceive vulnerable borrowers towards the consumer proposal or bankruptcy process in exchange for payment. Lead generators do this by falsely marketing themselves as Licensed Insolvency Trusteesregulated by the Office of the Superintendent of Bankruptcy, when they are, in fact, unlicensed.

These actors may sometimes encourage Canadians to file a consumer proposal or for bankruptcy without fully disclosing the implications of such actions. When filed unnecessarily, insolvency proceedings can increase the costs of unnecessary fees and fines, and the longstanding perpetuation of a borrower's cycle of debt.

In Budget 2024, the government announced its intent to take a more proactive approach to protect the most financially at-risk Canadians from lead generators, limit the risk of harmful debt cycles, and help Canadians keep more of their money in their pockets.

• To protect Canadians from receiving irresponsible advice from unlicensed debt advisors, the 2024 Fall Economic Statement announces the government's intent to add civil remedies, including restitution, for non-compliance with the Bankruptcy and Insolvency Act, and increase the maximum criminal fines under that Act from $5,000 to $100,000 for individuals, and to $1 million for corporations.

More Generous Pensions for Seniors

Canada's public pensions provide the bedrock of a secure and comfortable retirement for every Canadian. Indexed to inflation, the Canada Pension Plan (CPP) and the Quebec Pension Plan, as well as Old Age Security and the Guaranteed Income Supplement, keep up with the cost of living to ensure the more than 7 million seniors benefitting this year maintain their purchasing power through retirement.

This year, the average CPP recipient is receiving an average of more than $8,400.

Budget 2024 announced, as part of the 2022-24 Triennial Review of the CPP undertaken in partnership with provinces and territories, improvements to the CPP that will:

• Provide a larger Death Benefit for certain contributors;
• Introduce a partial children's benefit for part-time students;
• Extend eligibility for the disabled contributors' children's benefit when a parent reaches age 65; and,
• End eligibility for a survivor pension to people who are legally separated after a division of pensionable earnings.

The Budget 2024 changes will take effect on January 1, 2025. These new improvements build on the historic agreement the federal government reached with the provinces in 2016 to increase the CPP retirement benefit by up to 50 per cent over time. In 2019, this increase started being phased-in, ensuring Canadian workers have a strong and secure retirement, today and tomorrow.

Supporting Personal Support Workers

Canadians deserve a health care system that provides timely access to quality health services and medications, regardless of where they live or their ability to pay. Personal support workers at the front line of Canada's health care systems. They support Canadians in living and aging with dignity and helped us get through the COVID-19 pandemic.

On February 7, 2023, the federal government announced it would provide $1.7 billion over five years to support wage increases for personal support workers and related professions, as federal, provincial, and territorial governments work together on how best to support recruitment and retention. Since then, the federal government has signed agreements with the governments of British Columbia, Newfoundland and Labrador, and the Northwest Territories to support personal support worker wage increases and training by providing $232 million, $25 million, and $5.3 million to these governments, respectively.

However, the progress of other provinces and territories is too slow. Personal support workers continue to face burnout and insufficient wages, which are funded by provinces and territories.

• The 2024 Fall Economic Statement announces that, as provinces and territories have not agreed to bilateral deals to raise the wages of personal support workers, the federal government intends to introduce a new refundable tax credit for personal support workers, potentially modelled on the design of the tax credit for volunteer firefighters. To implement this measure, the government intends to introduce legislation as soon as possible. Further details will be announced in due course.

Exempting the Canada Disability Benefit from Tax

Reducing poverty and increasing the financial well-being of low-income persons with disabilities is a key priority in the government's work to build a fairer Canada. In a major step towards this goal, Budget 2024 launched the new Canada Disability Benefit by investing $6.1 billion over six years, beginning in 2024-25, and $1.4 billion per year ongoing. Low-income Canadians with disabilities, between the ages of 18 and 64, will be eligible for the Canada Disability Benefit.

• To ensure Canada Disability Benefit recipients keep the full value of their benefits, including other federal income-tested benefits and programs, such as the Canada Child Benefit, the 2024 Fall Economic Statement announces the government's intent to bring forward legislation to exempt the Canada Disability Benefit from being treated as income under the Income Tax Act.

In addition to exempting this benefit from taxation, the federal government is calling on provinces and territories to ensure that Canada Disability Benefit recipients do not face reductions in support provided under their programs. The government will be monitoring the decisions of provinces and territories and is prepared to take action to ensure the federal benefit is not clawed back.

On June 29, 2024, the proposed Canada Disability Benefit Regulations were published in Part I of the Canada Gazette for feedback from Canadians. The consultation period was extended from the standard 30 days to 86 days to ensure all interested Canadians had an opportunity to share their views. The consultation period closed on September 23, 2024, and the government is currently reviewing the feedback received.

An Extra $365 for a Single Worker with a Disability

Benoit earns $30,000 a year as a part-time assistant manager at a supermarket. As a working-age person who is eligible for the Disability Tax Credit, Benoit is expected to begin receiving $200 a month, starting in July 2025, under the new Canada Disability Benefit. By exempting the Canada Disability Benefit from his income under the Income Tax Act, there will be no requirement for Benoit to report this increase to his income when he files his tax return. As a result, Benoit will not see any reductions in the amount he receives under the Canada Workers Benefit. For 2026, this results in about $365 in savings.

An Extra $990 For a Couple with Disabilities

Agatha and Michelle are juggling the demands of raising two children while working, and earn a combined annual income of $45,000. As Disability Tax Credit recipients, Agatha and Michelle will begin receiving a combined $400 a month under the Canada Disability Benefit, starting in July 2025.  Because the benefit will not be required to be reported as income when they file their tax returns, Agatha and Michelle will not have to worry about any reductions in their Canada Child Benefit, Canada Workers Benefit, or GST Credit. For 2026, this results in about $990 in savings.

1.2 Building 4 Million Homes, Faster

We're investing to build homes at a record-breaking pace not seen since the Second World War, to stabilize the price of housing and ensure all Canadians, especially younger generations, can find an affordable place to call home.

Budget 2024 and Canada's Housing Plan unveiled an all-hands-on-deck approach to build more homes and keep them affordable. To start, we're building more homes by cutting municipal red tape, using faster, more innovative construction practices, and growing the skilled workforce we need to build nearly 4 million homes.

We're also making it easier to own or rent a home. To help Canadians save up for a downpayment, we're helping nearly 1 million Canadians save, with the help of tax relief, through the Tax-Free First Home Savings Account. As of December 15, 2024, we're making the boldest mortgage reforms in decades, which will lower downpayments and lower monthly mortgage payments. We're making these mortgage reforms to ensure all Canadians, including in the most expensive urban centres, can get their first home. We're also working with provinces and territories to protect renters with a new Blueprint for a Renters' Bill of Rights to crack down on excessive rent increases and renovictions, and make previous rent price history transparently available.

Progress Building More Homes

Since Budget 2024 and the release of Canada's Housing Plan, the government has made a concerted effort to rapidly deliver on its commitments. We are doing this by:

• Since April, fast-tracking the construction or renovation of roughly 4,000 homes since April through the Apartment Construction Loan Program and the Affordable Housing Fund.
• Providing at least $100 million through the Apartment Construction Loan Program to help builders build homes on top of existing businesses and retailers.
• Fully utilizing the additional $20 billion issuance of Canada Mortgage Bonds to build 30,000 more rental apartments.
• Launching, on November 7, 2024, the $1 billion Canada Housing Infrastructure Fund direct delivery stream for municipalities, to help cities build the infrastructure needed to build more homes. Applications are open to municipalities until March 31, 2025.
• Unlocking underused federal lands for development through the Canada Public Land Bank, launched in August 2024, to build 250,000 homes on public lands, with 83 underused federal lands already identified.
• Providing $50 million for Canada's Regional Development Agencies to scale-up innovative modular construction technologies that accelerate construction and reduce costs.
• Consulting, until December 31, 2024, on the taxation of vacant lands to incentivize landowners to use empty land for building housing, and not speculation.
• Introducing an accelerated capital cost allowance for eligible new purpose-built rental projects, to allow homebuilders to free up capital for their next project.
• Consulting, until January 20, 2025, to expand the removal of GST from purpose-built rental housing projects to new student residences built by universities, public colleges, and school authorities.
• A new $1 billion Rapid Housing stream to build deeply affordable, transitional, and supportive housing, and shelters for our most vulnerable.
• Investing $30 billion through the Canada Public Transit Fund—the largest transit investment in Canadian history—to build more public transit, accelerate commutes, reduce emissions, and help communities across the country grow.
• Confront the financialization of housing by consulting, until December 19, 2025, on restricting large corporate players from buying up single-family homes—because homes are for Canadians to live in, not a speculative asset class for investors.

Cutting Municipal Red Tape to Build 750,000 Homes

In 2023, we launched the $4 billion Housing Accelerator Fund to remove municipalities' barriers to getting housing approved and built. These municipal zoning reforms include allowing four homes per residential lot as-of-right, reducing parking standards, cutting red tape, and making municipally owned lands available for housing to fast-track construction across Canada.

Through the 178 agreements signed to date, the federal government has committed nearly $4 billion to build over 100,000 new homes within the next two years. Over the next decade, these agreements will build 750,000 new homes.

Recognizing the success of—and strong demand from municipalities for—the Housing Accelerator Fund, in Budget 2024, we topped-up the program with $400 million. Over the summer, the Housing Accelerator Fund application window reopened for previous applicants who were not previously approved. Over 230 applications were received, indicating the continued interest from cities for help in building more homes, faster.

New agreements with communities are expected to be finalized in winter 2025.

The Department of Housing, Infrastructure and Communities and CMHC are monitoring progress of these agreements and will place municipalities under review if they are found to be contravening their agreements with the federal government. CMHC is also developing a public tracker of progress on these agreements so that Canadians can hold their local governments to account.

Encouraging Bold Housing Reforms

Vancouver

The Housing Accelerator Fund is enabling Vancouver to help meet growing demand in the city. With federal support of almost $115 million, Vancouver is, among other measures:

• Updating planning rules to allow a variety of missing middle housing options across the city.
• Improving developers' ability to build below-market rental homes.
• Enabling significant additional transit-oriented housing, job space, and community amenities along the new Broadway Subway line.

Through these actions, Vancouver is fast-tracking the construction of more than 40,000 homes, including affordable homes over the next decade.

Halifax

The Housing Accelerator Fund is enabling Halifax to address the housing crisis. Federal support of $80 million has resulted in Halifax:

• Revising zoning bylaws to allow four-unit buildings "as of right", meaning developers will be able to build up to four units without special approvals.
• Working to introduce pre-approved housing designs, which will reduce the time and cost involved in planning each project.
• Making municipal lands available for affordable housing, and providing incentives to encourage affordable housing providers to build more housing, faster.

Through these actions, Halifax is fast-tracking the construction of 8,866 homes, including affordable homes over the next decade.

Cutting Red Tape to Get Apartments Built

We have introduced changes to the Apartment Construction Loan Program to make it easier for builders to build and get more projects done, faster. These changes include:

• Extending loan terms;
• Extending access to financing to housing projects for students and seniors;
• Introducing a portfolio approach so builders can move forward on multiple projects at once;
• Providing additional flexibility on affordability, energy efficiency, and accessibility requirements; and,
• Launching a new frequent builder stream to fast-track the application process for proven home builders.

These changes will make it easier, cheaper, and faster to build homes in Canada. For students, it will mean finding a spot closer to campus. For young families, it will mean getting a good home in a liveable neighbourhood near workplaces. For seniors, it will mean an affordable place where they can downsize comfortably, if and when they're ready.

More must be done to make the math work for homebuilders. Building on these efforts, CMHC is exploring new ways to make it easier for builders to access financing, informed by recommendations from key housing stakeholders. Further details will be announced before Budget 2025.

Adding Secondary Suites to Single-Family Homes

Even in Canada's biggest, densest cities, decades of restrictive zoning by municipal governments have built communities primarily comprised of single-family homes. Many homeowners, such as retirees, no longer use all of the space that comes with a single-family home. Yet, they continue to pay the heating, cooling, insurance, and property taxes on that unused space.

Secondary suites offer an opportunity to bring much needed gentle density to our neighbourhoods, while lowering the cost of homeownership and making it easier for multi-generational families to live together.

By helping homeowners add secondary suites, such as rental apartments, in-law suites, and laneway homes, we can reduce costs for homeowners, such as by helping them pay off a mortgage with the income from a new rental apartment. Secondary suites can also bring families closer together. For example, a retired couple may wish to downsize into a new laneway home or in-law suite, so their children could raise their young family in the property's existing home.

To build more housing in single-family neighbourhoods, starting January 15, 2025, new mortgage insurance reforms will help homeowners add secondary suites to their homes by leveraging their home's equity.

• Specifically, these reforms allow refinancing with insured mortgages for secondary suites, to let homeowners access the equity in their homes to finance the construction of secondary suites. Borrowers will be able to access financing of up to 90 per cent of the post-renovation value of their home up to $2 million, and amortize the refinanced mortgage over a period of up to 30 years.
• By increasing the mortgage insurance home price limit to $2 million for those refinancing to build a secondary suite, we're ensuring homeowners can access this refinancing in all housing markets across the country.

Building on mortgage refinancing for secondary suites, the government is now moving forward with its Budget 2024 commitment to launch a Secondary Suite Loan Program. This program will provide low-interest loans to help cover homeowners' renovation costs.

• The 2024 Fall Economic Statement proposes to double the loan limit for the Canada Secondary Suite Loan Program to $80,000. The program will make it cheaper to add secondary suites by offering 15-year loan terms at a low-interest rate of just 2 per cent, and will be administered by the Canada Mortgage and Housing Corporation. Funding would be sourced from existing departmental resources.

The Canada Secondary Suite Loan Program will launch in early 2025.

Helping Families Live Closer Together

Nav and Rohan purchased a home in Toronto in 2019. Nav's parents, Bobby and Pal, currently live in a large single-family home in Brampton, but are looking to downsize and move closer to their daughter. Nav and Rohan plan to build a secondary suite on their property for Bobby and Pal to rent, with an expected cost of up to $140,000. They plan to apply to the new Canada Secondary Suite Loan Program, which offers up to $80,000 in low-interest financing to add a secondary suite to their home.

For the remaining $60,000, the recent changes to mortgage insurance rules will allow Nav and Rohan to refinance their insured mortgage to access the equity in their home to fund the rest of the project's cost.

By combining insured mortgage refinancing for secondary suites with the Canada Secondary Suite Loan Program, Nav and Rohan can reduce the cost of financing their project. The rent from Bobby and Pal will also help make Nav and Rohan's mortgage payments more manageable. By building a secondary suite, the family can live closer together, all while saving money.

Accelerating Funding to Build Faster

The Apartment Construction Loan Program plays a crucial role in filling Canada's housing supply shortage by providing developers with the necessary capital to build rental homes. To help more apartment buildings break ground and ensure homebuilders have the financing needed to keep building, the government topped-up the Apartment Construction Loan Program by $30 billion since the fall of 2023.

• Due to high demand for the Apartment Construction Loan Program, the 2024 Fall Economic Statement announces that the government is accelerating $2 billion in low-cost financing, supporting 4,000 homes to be built faster. This ensures builders can access this critical financing now, not in the years ahead. This funding would be sourced from existing departmental resources.

The $6 Billion Canada Housing Infrastructure Fund

To build the houses Canadians need, we need to invest in the capacity for communities to grow and densify. Adequate water and solid waste infrastructure is essential to making this happen.

The federal government is doing its part to help cities build the infrastructure needed to build more homes. In Budget 2024, we launched the $6 billion Canada Housing Infrastructure Fund to unlock more housing in communities across the country.

• The 2024 Fall Economic Statement announces that through existing funding allocated under the Canada Housing Infrastructure Fund's $5 billion provincial and territorial stream, the federal government will fund:

  • The Winnipeg North End Sewage Treatment Plant in Manitoba, by providing $150 million over four years, starting in 2026-27; and,
  • The Iona Island Wastewater Treatment Plant in Metro Vancouver, British Columbia, by providing $250 million over five years, starting in 2025-26.

Funding for these two wastewater treatment plants, which is subject to meeting the Canada Housing Infrastructure Fund conditions, are just two of the many critical infrastructure projects that will be supported by this $6 billion Fund. We are actively working with provincial, territorial, and municipal partners to deliver funding through the $5 billion provincial and territorial stream and $1 billion municipal stream. More projects will be announced in due course.

Canada Infrastructure Bank for Housing Initiative

The housing challenge in Canada requires innovative thinking, new partnerships, and a variety of financing supports to make progress. That is why in March 2024, the Canada Infrastructure Bank (CIB) launched its Infrastructure for Housing Initiative to provide low-cost financing to enable municipalities and Indigenous communities to build infrastructure in support of new housing supply in line with its priority investment areas, including water, transportation, public transit, and clean power.

The CIB is engaging with communities across Canada to advance the Infrastructure for Housing Initiative and develop a healthy pipeline of potential projects to unlock housing. Since the launch of the Initiative, the CIB has announced:

• $140 million to support water projects that are expected to enable the construction of approximately 15,000 new housing units in the City of Brandon and various communities in southeastern Manitoba; and,
• $2 million to support analysis and assessment work for the proposed redevelopment of the Namur-Hippodrome area of Montreal, which could enable more than 10,000 housing units.

Prior to the launch of the Infrastructure for Housing Initiative, the CIB had already announced financing to projects that will spur new housing, including: 

• $7.9 million in the Netmizaaggamig Nishnaabeg community in Northern Ontario to help build critical electrical, broadband, and water service infrastructure for the establishment of approximately 55 fully serviced, multi-family affordable and social housing units; 
• $15 million to support significant road upgrades and other social and community infrastructure initiatives in the Enoch Cree Nation Reserve in Alberta; and,
• $135 million in the Markham District Energy project, which will help expand future district energy systems and support future housing in the City of Markham in Ontario. 

Building up to Four Homes at a Time

Many of Canada's neighbourhoods are dominated by single-family homes, including in our major cities. This means there is an immense opportunity to gently increase density and increase the supply of housing close to good jobs, schools, and public transit. To incentivize homebuilders to make the most of available land by building more multi-family homes, multi-unit mortgage loan insurance needs to be reformed.

• The 2024 Fall Economic Statement announces that the government is working with the Canada Mortgage and Housing Corporation to explore options for using mortgage loan insurance to support the construction of more two-to-four-unit homes.

More Financing for Affordable Housing

The government has taken bold action to deliver the funding affordable housing providers need. The Affordable Housing Fund is a flagship federal program that equips trusted affordable housing partners to keep delivering on their mandates.

In the 2023 Fall Economic Statement, we topped up the Affordable Housing Fund with an additional $1 billion, and in Budget 2024, we provided another $1 billion to create a permanent Rapid Housing Stream, bringing the Affordable Housing Fund's total financing for partnered affordable housing providers to $15 billion today.

The Rapid Housing Stream will build and acquire deeply affordable housing, supportive housing, and shelters. This investment builds on the success of the previous three rounds of the Rapid Housing Initiative which supported 15,000 homes for our most vulnerable, including projects like Dunn House in Toronto. Dunn House is Canada's first-ever social medicine supportive housing initiative led by the University Health Network, in collaboration with Fred Victor, United Way Greater Toronto, and the City of Toronto, and was made possible with over $14 million in funding from the federal Rapid Housing Initiative. Dunn House is a new four-storey modular building in a former parking lot that includes 51 new homes for people experiencing homelessness with social and health services provided on site. It's exactly the type of project needed to confront the housing crisis and improve community health outcomes. The federal government will continue to work with partners to deliver more projects that recognize the critical link between housing and health.

Despite these record investments, affordable housing providers are still struggling to access financing to cover the costs of planning for new affordable housing projects. Providing financing to support development work, such as site planning, municipal regulatory approvals, and construction design, would enable affordable housing providers to deliver on their mandates of building more housing for those who need it most.

• The 2024 Fall Economic Statement announces that $50 million over two years, starting in 2025-26, will be available through the Affordable Housing Fund for affordable housing providers to use for pre-development work. This funding would be sourced from existing departmental resources.

Supporting Women and their Children Fleeing Violence

Women facing gender-based violence and their children are particularly vulnerable when it comes to housing. That is why, through previous housing investments, we have committed nearly $15 billion to date towards meeting the needs of women and children. This includes $250 million provided through Budget 2021 to build more transitional housing and shelter spaces through the Affordable Housing Fund.

• The 2024 Fall Economic Statement announces that $50 million from the Affordable Housing Fund's Rapid Housing Stream will be accelerated in 2025-26 to build more women's shelter spaces. This will help ensure the safety and security of vulnerable women and their children. This funding would be sourced from existing departmental resources.

Supporting Non-Profit and Co-Op Housing Residents

The Federal Community Housing Initiative is a $618.2 million fund that supports community housing projects, including co-operative housing, with the funding they need to keep rent low and keep up with maintenance. This funding is essential to preserving the existing supply of affordable housing.

Specifically, the initiative provides support through two streams. First, it provides direct rental assistance payments to cover the cost of low-income tenants' rent that is above 30 per cent of their household income. Second, it provides transitional funding to housing providers to ensure they can maintain and operate their existing housing stock—without raising rent.

• The 2024 Fall Economic Statement proposes to provide $362.7 million over five years, starting in 2028-29, to extend the Federal Community Housing Initiative, which will provide tens of thousands of households with certainty they will continue to receive the rental assistance they count on.

A Team Canada Effort for Housing Affordability

Building more homes, faster, and making housing prices affordable requires a Team Canada effort. All orders of government—federal, provincial, territorial, and municipal—need to work together to remove barriers that slow down homebuilding.

The federal government is doing our part. Our housing plan includes $6 billion through the Canada Housing Infrastructure Fund to build the infrastructure, like water mains and sewer systems, needed to build more homes. Through Canada Builds, we are partnering with provinces and territories to build more rental homes across the country, by leveraging the $55 billion Apartment Construction Loan Program to support provinces and territories that launch their own ambitious housing plans.

We've provided $5.3 billion since 2019, including an additional $1.3 billion in Budget 2024, to equip communities to deliver critical front-line services to the most vulnerable—those experiencing homelessness and housing insecurity.

We're not just providing funding, we're pushing provinces and territories to act now, and match our $250 million investment in Budget 2024 to help end encampments and end homelessness. By leveraging federal funding, we can put a combined $500 million Team Canada investment forward to create more shelter spaces, transitional homes, and services to help those in encampments find housing. The federal government is ready to negotiate agreements with provinces and territories to end encampments.

1.3 Lowering the Cost of Homeownership

Canadians work hard to be able to afford a home. However, the high cost of mortgage payments is a barrier to homeownership, especially for Millennials and Gen Z. The prospect of owning a home in Canada needs to be as real for young people today as it was for previous generations.

And for the millions of Canadians who rent, including those who prefer the flexibility that comes with renting, significant rent increases in recent years have pushed what was once an affordable option out of reach. While asking rents for new leases have begun to decline this fall, we need to keep up our efforts to sustain this progress on bringing rent back to affordable levels by working hard to get more homes built, faster.

Although home prices have fallen from their pandemic-era highs—with Canada experiencing larger declines over the past year than many other economies—prices remain elevated compared to pre-pandemic levels.

The federal government is lowering the cost of both buying and renting a home. We're lowering downpayments and monthly mortgage payments to help more Canadians buy that first home, and we're building more rental apartments to bring down the cost of rent—so you can save for that first downpayment.

Progress for First-Time Buyers and Homeowners

In recent months, our government has:

• Helped nearly 1 million Canadians save up for a downpayment with the Tax-Free First Home Savings Account;
• Increased the Home Buyers' Plan withdrawal limit from $35,000 to $60,000, to reflect the cost of downpayments in the most expensive housing markets;
• Unveiled blueprints for a Renters' Bill of Rights and a Home Buyers' Bill of Rights to support fair home renting and buying processes; and,
• Reached a total of almost 100,000 loans approved to help households reduce their home energy bills with loans of up to $40,000 through the Canada Greener Homes Loan Program.

Lower Downpayments and Lower Mortgage Payments

In Budget 2024, the government announced it would permit 30-year mortgage amortizations for first-time home buyers purchasing new builds, including condos. This measure came into effect on August 1, 2024. However, the government knows that even bolder action is required to unlock homeownership for every generation.

That is why, on September 16, 2024, the federal government announced the boldest mortgage reforms in decades to make mortgages more affordable and put homeownership back within reach for Canadians.

First, these reforms increase the $1 million price cap for insured mortgages to $1.5 million, to reflect current housing market realities. This will help more Canadians qualify for a mortgage with a downpayment below 20 per cent. Increasing the insured-mortgage cap—which has not been adjusted since 2012—to $1.5 million will help more Canadians buy a home.

Second, these reforms expand eligibility for 30-year mortgage amortizations to all first-time home buyers and to all buyers of new builds, to reduce the cost of monthly mortgage payments, so more Canadians, particularly younger generations, can afford a mortgage as they climb the salary ladder. By helping Canadians buy new builds, including condos, the government is taking yet another step to incentivize more new housing construction and tackle the housing shortage.

These two major mortgage reforms came into effect on December 15, 2024. Combined with falling interest rates, these reforms will result in meaningful reductions in downpayments and monthly mortgage payments for new homebuyers with insured mortgages.

Reducing Downpayments

Laura and Alex, young professionals in Toronto, are planning to start a family but the 1-bedroom condo they rent is too small. They have been saving carefully for five years to buy a larger place, but with the price of a semi-detached house averaging $1.04 million in Toronto, they are struggling to come up with the $208,000 minimum downpayment. The new mortgage insurance rules raising the eligible home price limit for mortgage insurance from $1 million to $1.5 million will lower their downpayment requirement to $79,000 letting them start the next chapter of their lives sooner.

Lowering Monthly Payments

Mealla has been renting an apartment in Kelowna but is looking to purchase her first home. Although she has managed to save $50,000 for a downpayment, she is concerned that with current interest rates, she would struggle to afford the $2,779 monthly mortgage payment for the average home priced at $550,000. With the new mortgage insurance rules allowing 30-year amortizations for first-time homebuyers, Mealla could reduce her monthly mortgage payment from $2,779 to $2,533. This would make the monthly mortgage payments more affordable for Mealla and bring her closer to getting the keys to her first home.

Removing the Stress Test at Mortgage Renewal

When the time comes to renew their mortgage, Canadians deserve a chance to shop around for a better rate from a new lender. The government believes homeowners should get a chance to find a better deal, in a more competitive mortgage market, every time they renew.

In the 2023 Fall Economic Statement, the government confirmed that homeowners with insured mortgages did not have to requalify against the mortgage stress test (also known as the minimum qualifying rate) at renewal, making it easier for many homeowners to switch lenders.

On November 21, 2024, the Office of the Superintendent of Financial Institutions (OSFI) removed the stress test requirement for uninsured mortgage holders who switch from one federally regulated lender to another. With this change, more mortgage holders can now switch lenders at renewal without requalifying.

These measures increase mortgage competition and help more Canadians reduce the cost of interest on their mortgage. Building on these measures:

• The 2024 Fall Economic Statement announces that the government will launch consultations on ways to improve the structure and effectiveness of the stress test on insured mortgages.
• In addition, following OSFI's announcement, the government is amending the mortgage insurance rules to remove the stress test requirement for uninsured mortgage holders who switch from a federally regulated lender to a lender that purchases portfolio insurance for the mortgage. Today, the Department of Finance published a technical backgrounder outlining the parameters for this measure, which is effective immediately.

Reviewing Long-Term Fixed Rate Mortgages

Canadian mortgage lenders can offer mortgages of any term, but historically, mortgage terms of five years or less have been the most common. In other countries, such as the United States, 30-year fixed rate mortgage terms are common, but carry higher interest rates and have fewer flexibilities than the average Canadian mortgage. The government is examining the barriers to making long-term mortgages more widely available in Canada and offering more options to borrowers looking for a mortgage.

• The 2024 Fall Economic Statement announces that the government will launch consultations on the market development of long-term mortgages in Canada.

Energy Retrofits with $40,000 Interest-Free Loans

Energy costs, such as electricity and natural gas bills, are typically the second biggest recurring expense of owning a home, along with home insurance and property taxes. Home energy costs can be reduced with retrofits that lower energy consumption, such as installing more efficient heating systems like heat pumps, replacing old doors and windows, and adding insultation.

To help homeowners with the cost of retrofits that reduce their home energy bills, the Canada Greener Homes Loan Program provides 10-year interest-free loans of up to $40,000. Already, the program has approved almost 100,000 loans to help households reduce their home's energy costs for heating and cooling.

• The 2024 Fall Economic Statement announces the Canada Greener Homes Loan Program will deliver an additional $600 million in interest-free loans to support 15,000 to 24,000 more homeowners in reducing energy costs and advancing Canada's goal of achieving net-zero emissions by 2050. This investment has a fiscal cost of $174.4 million over six years, starting in 2024-25.

The government recognizes that the cost of energy efficiency retrofits can make them difficult to access for low- to median-income households. To help, in Budget 2024, the government announced $800 million for the Canada Greener Homes Affordability Program. This program will fund energy efficiency retrofits for low- to median-income households, including renters, to lower energy bills and make homes less costly to heat and cool, comfortably. A call for proposals from provinces and territories was launched this fall, focusing on regionally tailored initiatives that can get up and running as quickly as possible. The Canada Greener Homes Affordability Program is also providing dedicated support to Indigenous partners to advance their energy efficiency priorities.

Retrofits to Save $960 Every Year on Home Energy Bills

Lily and Wenzhuo recently bought their first home. The house is older, with drafty windows and a gas furnace needing to be replaced. As part of the Canada Greener Homes Loan program, they undertake an EnerGuide home evaluation. For their home, the most effective energy efficiency upgrades were determined to be attic insulation, air sealing, door and window replacements, and replacing their gas furnace with an electric heat pump. Lily and Wenzhuo receive a $40,000 interest free loan—with a 10-year repayment term—for the recommended retrofits. Once these retrofits are completed, their home is more comfortable, and they save $960 every year on their energy bills.

Switching from Home Heating Oil to Save $2,600 Every Year

Matthew lives in Halifax and has owned his home for 30 years, but his aging oil furnace is starting to show signs of wear, and his annual oil bill is upwards of $5,000. Matthew undertakes an EnerGuide home evaluation and applies to the Canada Greener Homes Loan program. He is approved for an interest-free loan that covers the entire cost of installing an electric heat pump. With his new cold climate air source heat pump, he saves about $2,600 every year—a more than 50 per cent reduction to his annual home heating bills.

Restricting Large Corporate Investors from Buying Single-Family Homes

Homes are for Canadians to live in, not a speculative asset class for investors. When purchasing a home, Canadians might expect to be bidding against other potential buyers, but not a multi-billion-dollar hedge fund.

On November 19, 2024, the government launched consultations on restricting large corporate investors from buying existing single-family homes in Canada. The government is holding consultations with all Canadians, provinces and territories, financial sector regulators, and other stakeholders to gather input on the scope of investor activity in the single-family home market, its impact on housing affordability, and on potential restrictions that would keep homes available to Canadians looking to buy. The government is inviting feedback until December 19, 2024, at consultation-housing-logement@fin.gc.ca.

Following consultations, further details will be announced in Budget 2025.

Advancing Flood Insurance

Canadians deserve affordable flood insurance to help them protect their homes and belongings. As announced in Budget 2023 and reaffirmed in Budget 2024, the government intends to develop a flood insurance program for households at high risk of flooding. This would include offering flood reinsurance and establishing a separate insurance affordability subsidy program.

The government will now launch targeted conversations with provincial and territorial governments on potential flood insurance program design parameters ahead of the 2025 Federal, Provincial, Territorial Meeting of Ministers Responsible for Emergency Management.

Provinces and territories have a role to play in protecting Canadians from floods and sharing the cost of the program. Provinces and territories can help reduce the risk in their areas of responsibility, such as land use planning. The federal government is committed to working with provinces and territories and the insurance industry to ensure that Canadians at high risk of flooding are not put in harm's way.

Following further engagement with provinces, territories, and the insurance industry, more details will be announced in Budget 2025.

Combatting Mortgage Fraud

As announced in Budget 2024, the federal government is committed to fighting mortgage fraud through income verification. The Canada Revenue Agency (CRA) has been actively consulting with international tax administration partners and IT, privacy, security, and legal experts to identify options that would help financial institutions detect and deter fraud in a manner that is secure, user-friendly, and compatible with the CRA's systems.

• The 2024 Fall Economic Statement announces that this fall, the CRA has expanded its outreach to the broader financial sector, including mortgage lenders, on how to best design and implement a new tool to combat mortgage fraud. The CRA aims to begin implementation of this measure in early 2025.

Balancing Immigration with the Supply of Homes

Accelerating the pace of new housing construction while reducing immigration supports our efforts to ensure supply can catch up with demand. Relieving demand for housing and social services benefits Canadians, and better sets newcomers up for success.

In the 2025-2027 Immigration Levels Plan, released on October 24, 2024, the federal government announced we are pausing Canada's population growth for two years, before returning to sustainable growth of 0.8 per cent in 2027. Pausing population growth for two years will significantly improve housing affordability and protect workers.

This year, for the first time, the Immigration Levels Plan set targets for temporary resident admissions, including international students and foreign workers. Targets for temporary and permanent residents were developed in tandem.

Permanent resident admissions will decrease to 395,000 in 2025, to 380,000 in 2026, and to 365,000 in 2027. More than 40 per cent of all permanent resident admissions in 2025 will be students or workers who are already residing in Canada, meaning they will not increase housing demand. The economic immigration stream, which is essential to attracting skilled workers who boost economic growth, will continue to represent the largest share of permanent resident admissions each year. By 2027, nearly 62 per cent of all permanent resident admissions will be through the economic immigration stream.

Canada's temporary resident population, compared to each previous year, will decline by 445,901 in 2025, by 445,662 in 2026, and then increase modestly by 17,439 in 2027. These figures represent work and study permits issued to new arrivals to Canada. This plan is in support of reducing temporary resident volumes to 5 per cent of Canada's population by the end of 2026. To achieve this, the government is moving forward with several immigration reforms, including:

• Reducing the study permit intake cap for 2025 by 10 per cent compared to 2024 levels;
• Introducing new eligibility requirements for the Post-Graduation Work Permit, including requiring a minimum proficiency level in a Canadian official language; and,
• Limiting spousal work permit programs to spouses of international master's, doctoral, or certain professional programs, or spouses of foreign workers employed in management positions or occupations with labour shortages.

Overall, the Immigration Levels Plan will reduce demographic demand for housing by 670,000 homes by the end of 2027, according to Department of Finance calculations, allowing supply to catch up. The Parliamentary Budget Officer estimates that the Immigration Levels Plan could reduce Canada's housing supply gap by 45 per cent by 2030, as demographic demand slows and homebuilding accelerates. Many private sector economists have also predicted slower population growth will take pressure off the housing market and allow prices to ease, particularly in the rental market.