November 27, 2023 – Fall Economic Statement

Dear Neighbour,

This year’s Fall Economic Statement was announced by Finance Minister Chrystia Freeland last week. She outlined the state of our country’s economy, as well as provided an update on our government’s plan to tackle the housing crisis, while continuing to make lives more affordable for Canadians. 

Here are a few of the major points I would like to highlight: 

The new Canadian Mortgage Charter 

The 2023 Fall Economic Statement announced the new Canadian Mortgage Charter. The main points of the Charter are: 

• Allowing temporary extensions of the amortization period for mortgage holders at risk; 

• Waiving fees and costs that would have otherwise been charged for relief measures; 

• Not requiring insured mortgage holders to requalify under the insured minimum qualifying rate when switching lenders at mortgage renewal; 

• Contacting homeowners four to six months in advance of their mortgage renewal to inform them of their renewal options; 

• Giving homeowners at risk the ability to make lump sum payments to avoid negative amortization or sell their principal residence without any prepayment penalties; and, 

• Not charging interest on interest in the event that mortgage relief measures result in a temporary period of negative amortization. 

Removing GST/HST from Psychotherapy and Counselling 

Many community members have written to me to ask for the removal of the GST/HST on psychotherapy and counselling. The 2023 Fall Economic Statement proposes to exempt professional services rendered by psychotherapists and counselling therapists from the GST/HST. This is a big step in supporting Canadians and making essential services more affordable, as therapy plays an important role in the lives and mental health of so many Canadians. 

Using Waste Biomass to Generate Electricity and Heat 

Did you know that forestry and agricultural industries create organic by-products during production (such as leftover wood chips and crop residues) which have the potential to be used to generate affordable energy while also reducing emissions? I recently visited the district energy system at University of British Columbia that uses this type of waste biomass to switch from reliance on natural gas. 

The 2023 Fall Economic Statement proposes to expand eligibility for the Clean Technology Investment Tax Credit, and the Clean Electricity Investment Tax Credit to include waste biomass.

I recognize that this continues to be a difficult time for many people in our community, with the cost of housing and food being top concerns. There is a ray of hope in this Fall Economic Statement and the response from the Bank of Canada is promising, stating that these are the right indicators to signal reducing inflation. You can read more about this here. Our economy is in a strong position among G7 nations and globally. Our federal deficit is decreasing, and our Debt to GDP ratio is on a sustainable path. International comparisons show Canada’s secure fiscal position – the International Monetary Fund has projected Canada to have the highest Real GDP Growth for 2024, as well as the lowest percent of GDP for Government Budgetary Balance for 2024, both among G7 nations. We have been ranked third of Global Recipients of Foreign Direct Investment Inflows, at $29 million USD. 

If you would like to take a more detailed look at the 2023 Fall Economic Statement, you can click here.

Yours,

Julie

Julie Dabrusin

Member of Parliament for Toronto–Danforth