Liberals will ask financial institutions to contribute more to help more Canadians afford a home

A re-elected Liberal government will move forward with a plan to have Canada’s largest financial institutions pay more, to support Canadians in their goal of owning a home, Liberal Party Leader Justin Trudeau announced on Wednesday in Surrey, B.C.

The Liberals said the pandemic has been challenging for Canadians and since day one, Trudeau and the Liberal team have had their backs. By investing in Canadians and small businesses, and stepping up to support everyone at their most difficult time, the Liberals said they helped workers keep their jobs and businesses stay afloat. But too many Canadians are still struggling to pay their bills and afford a home – and that has to change.

“For many Canadians, the past year and a half has been incredibly tough and now they’re wondering what the future will hold,” said Trudeau. “We have to rebuild a better Canada  one that works for everyone. That’s why we’re going to ask our largest financial institutions, who have recovered faster and stronger than many other industries, to pay a little more so we can invest in Canadians and help them find a home of their own.”

To help Canadians find a home and rebuild a Canada that works for everyone, a re-elected Liberal government will:

  • Raise the corporate income tax rate paid by Canada’s largest and most profitable banks and insurance companies by 3 percentage points on all earnings over $1 billion; and
  • Establish the Canada Recovery Dividend so these institutions contribute more over the next four years of Canada’s recovery.

In total, these measures will generate a minimum of $2.5 billion per year over the next four years, beginning in 2022-23.

On Tuesday, Trudeau and the Liberal team had announced their three point housing plan, “A Home. For Everyone.”

“For too long, the deck has been stacked against Canadians trying to find a place to call home,” said Trudeau. “We have to change that, and we need to rebuild a Canada that works for everyone. Our housing plan will unlock homeownership and help people save up to $30,000, build more homes, and protect home buyers’ rights. While Erin O’Toole’s Conservatives want to cut taxes for the wealthy and services for everyone else, our plan will create new jobs, grow the economy, and strengthen the middle class. We will move forward – for everyone.”

Backgrounder: Asking Financial Institutions to Help Canada Build Back Better