Housing, Housing and More Housing....

Marci Dean • November 23, 2023

Did you hear? The Federal Government released details on their plans for housing in this weeks’ Fall Economic Statement!  It's all about tackling the housing supply and affordability crisis that's keeping politicians and many Canadians up at night. 


The Liberal Government has committed to add a 3.5 million new housing units by 2030. That's a lot of new homes, if they can do it! Finance Minister Chrystia Freeland outlined the details in the House of Commons, saying her government is planning to spend $20.8 billion over six years, from which $6.3 billion is going straight into housing affordability. But here's the kicker – they're expecting a $40 billion deficit this year. Yikes, this plan is expensive! So, like it or hate it, we can all agree we need more housing and unfortunately that comes at a big cost.

 

I am going to steer clear of the politics and the macro economics of this plan and just outline the nitty gritty below. ?

 

Here's a break down of what was announced:


1.  Cracking Down on Short-term Rentals: They're giving a stern talking-to to non-compliant short-term rentals like Airbnb. The government wants more long-term homes for us Canadians, so they're nixing income tax deductions for owners who don't play by the rules. Say goodbye to tax breaks for short-term rentals in places like Toronto, Montreal, and Vancouver.


2.  Incentivizing New Housing: The government is throwing an extra $1 billion into their Housing Accelerator Fund, aiming to help build 100,000 new homes in five years. Plus, they're handing out low-cost loans, and even saying bye-bye to the GST on new rental construction, but that will cost them $1.1 billion.


3.  The Canadian Mortgage Charter: There's a new kid in town – the Canadian Mortgage Charter. It's all about making sure we get fair and timely mortgage relief if we hit a financial rough patch. If you're struggling, the government wants banks to cut some slack, like allowing temporary extensions and not charging interest on interest during relief periods. ***Watch for a lot more to come on this as we in the industry get copies of the actual document!***


4.  Clarifying the Mortgage Stress Test: Good news! The mortgage stress test won't be making a comeback for insured renewals. The stress test is the tool used by lenders to make sure you can handle your mortgage at a higher interest rate. The change is that now borrowers won't have to be “stress tested” at renewal and this applies even if they move lenders at renewal. As far as we can tell, this is “old news” and was released by OFSI a few weeks ago and since it applies to insured mortgages only, this impacts just 1 in 4 mortgages in Canada. The devil is in the details on this one so stand-by for more as soon as I get the full information AND we learn what our lenders have to say about this. 


5.  Canada Mortgage Bond (CMB) Program: They're upping the game on Canada Mortgage Bonds, planning to increase the annual limit from $40 billion to $60 billion. This extra cash – $20 billion worth – is supposed to help build 30,000 new rental apartments every year.


6.  Priority for Construction Workers: In May, the government started giving the VIP treatment to construction workers. They're fast-tracking permanent residency for those with specific skills, education, and certifications in the construction biz. So far, 1,500 lucky workers have scored permanent residency.


7.  Update on First-Home Savings Account: Remember that Tax-Free First-Home Savings Account they talked about last year? Well, it's official – over 250,000 Canadians have jumped on the bandwagon. You can save up to $8,000 a year, tax-free, for that dream home down payment. It's like a mix of the Tax-Free Savings Account and the Registered Retirement Savings Plan, but for your first home! I will be hosting a webinar on this early in 2024 with one of my Financial Planner referral partners. 


There you have it – the government's game plan to fix up the housing situation. Yes, it is expensive but we can all agree the housing shortages are a real problem in Canada. Time will tell but let's hope these initiatives make finding a home a little less stressful! ??

 

As always, please give me a call or book a time to talk below if you want to discuss your specific situation.

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RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Marci Deane • July 22, 2026
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Marci Deane • July 15, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.

Let’s Talk About Getting Top Dollar for Your Property

By Marci Deane • July 8, 2026
When it comes to selling your home, most people think the first call should be to a real estate agent. But the smartest first step often isn’t with your agent—it’s with an independent mortgage professional. Why? Because your mortgage plays a bigger role in your bottom line than most people realize. Planning to Buy After You Sell If selling means you’ll also be purchasing another property, you’ll want to know exactly where you stand financially before listing. Mortgage rules change regularly, and qualifying once doesn’t guarantee you’ll qualify again. Getting a pre-approval in place ensures you know what you can afford and eliminates surprises later. On top of that, reviewing the terms of your existing mortgage could uncover options you may not have considered. For example, porting your mortgage instead of arranging a brand-new one could save you thousands. Selling Without Buying Even if you aren’t planning to buy right away, there’s still an important step: understanding the cost of breaking your mortgage. Unless your mortgage is open, penalties apply—and they can be significant. By reviewing the numbers with a mortgage professional, you might find that simply adjusting your timeline could reduce or even avoid costly fees. Navigating Life Changes In situations like a marital breakdown, it can feel like selling the family home is the only path forward. But that’s not always the case. With the right guidance and a legal separation agreement, one spouse may be able to buy out the other, keeping the home and providing stability for everyone involved. The Bottom Line Selling your property is more than just putting a sign on the lawn—it’s about creating a financial plan that protects your equity and positions you for the best possible outcome. Before you take the leap, let’s sit down and review your options. 📞 If you’re ready to talk strategy and make sure you get top dollar for your property, I’d be happy to connect anytime.