CHRYSTIA Freeland, Deputy Prime Minister and Minister of Finance, on Tuesday delivered the 2023 Fall Economic Statement, taking further action to support the middle class and build more homes, faster.

The government’s economic plan is building a strong economy that works for everyone, with great jobs that Canadians can count on. And this plan is working, the government said.

Over a million more Canadians are employed today compared to before the pandemic. Inflation is coming down, wage increases are outpacing inflation, and private sector economists now expect Canada to avoid the recession that many had predicted.

In the face of a rapid global increase in interest rates, many Canadians are feeling the squeeze, particularly when it comes to affording a home to rent or own. In response, the 2023 Fall Economic Statement is focused on today’s two key challenges.

First, the government is continuing to support Canadians at a time when some prices are still too high and mortgage renewals are looming. With new, targeted measures to help stabilize prices, make life more affordable, and protect Canadians with mortgages, the government is taking concrete action to support Canadians.

This includes ensuring Canadians have access to the tailored mortgage relief they need at a time of higher interest rates. To do so, the 2023 Fall Economic Statement announces the new Canadian Mortgage Charter, which details the relief that Canadians can expect from their banks if they are in financial difficulty.

Second, the government is accelerating its work to build more homes, faster, and make housing more affordable. Building on the significant action the government has already taken, the 2023 Fall Economic Statement introduces billions of dollars in new financing to build more homes, faster, takes steps to crack down on short-term rentals so that homes can be used for Canadians to live in, and will help to increase the number of construction workers across the country. This continues the federal government’s work leading a national effort to make housing more affordable across Canada.

The government’s economic plan is responsible, and it sees Canada maintain both the lowest deficit- and net debt-to-GDP ratios in the G7. The government is taking further action in the 2023 Fall Economic Statement to ensure Canada’s finances remain sustainable—and that government can continue to responsibly invest in Canadians, strengthen the middle class, and build a stronger economy that works for everyone.

As a foundational part of the government’s work to invest in Canada’s economic future and create more good-paying jobs, the government is also delivering its new major investment tax credits on a priority basis, with legislative implementation advancing in the days to come and concluding in 2024.

Canada’s Housing Action Plan:

• The $4 billion Housing Accelerator Fund, which is helping to cut red tape and build more than 100,000 new homes across Canada, faster;
• Repurposing more federal lands to build homes on;
• Removing the GST from new rental housing, including co-operative housing corporations that provide long-term rentals;
• Unlocking $20 billion in low-cost financing for rental construction to build up to 30,000 more homes per year;
• Financing more rental housing by providing $15 billion for loans through the Apartment Construction Loan Program, to help build 30,000 new homes;
• Building more affordable housing for the most vulnerable Canadians with $1 billion for the Affordable Housing Fund, to help build more than 7,000 new homes;
• Breaking down barriers to labour mobility within Canada, with priority for construction workers and health care professionals, and prioritizing skilled tradespeople for permanent residency;
• Cracking down on non-compliant short-term rentals and supporting municipal enforcement of short-term rental restrictions; and,
• A new Canadian Mortgage Charter to ensure Canadians at financial risk can access the tailored mortgage relief they can expect from their bank to help them make their payments and stay in their homes.

Supporting a Strong Middle Class:

• Strengthening competition in Canada, which means lower prices and more choice, by reforming legislation to crack down on unfair practices that drive up costs;
• Ensuring Canada’s five largest grocery chains keep their commitments to stabilize prices, and enhancing competition in the grocery sector;
• Removing the GST from psychotherapy and counselling services, to make mental health care more affordable for Canadians;
• Continuing to crack down on junk fees, including lowering non-sufficient fund (NSF) fees charged by banks, investigating international mobile roaming rates, and ensuring that airlines seat all children under the age of 14 next to their accompanying adult at no extra cost;
• Amending legislation to support Canadians’ right to repair their devices and products by preventing manufacturers from refusing to provide the means to repair them in an anti-competitive manner;
• A new Employment Insurance adoption benefit, which would provide 15 weeks of shareable benefits to parents; and,
• Enhancing low-cost and no-cost banking accounts to reflect the realities of modern banking while designating a single independent ombudsman to help Canadians resolve complaints with their banks.

Quick Facts:

* Canada’s unemployment rate, for the last 21 months, has been lower than at any time under the previous government. Over a million more Canadians are employed today compared to before the pandemic.

* Wages have outpaced inflation for the past nine months.

* The International Monetary Fund projects Canada to see the strongest economic growth in the G7 next year.

* According to the OECD, in the first half of this year, Canada received the third-most foreign direct investment of any country in the world—and the highest per capita in the G7.