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Federal Election Promises: Mortgages, Taxes, and More!

September 25, 2019

Jay Denney, Manager of Advocacy, Canadian Credit Union Association

CCUA is actively monitoring the federal election campaign and two weeks into it, we are seeing many announcements and commitments from all parties regarding their respective platforms.

The Green Party released their entire platform which includes commitments of note such as:

  • A proposed new 5 % surtax on commercial banks, but that would expressly not apply to credit unions and caisses populaires.
  • Credit card interest rates would be capped at Bank of Canada Prime + 10%.
  • ATM fees would be capped at $1 per transaction.
  • A new Canada Co-op Housing Strategy would be created, in partnership with CMHC, co-op societies, credit unions and other lenders.
  • The First Time Home Buyers Grant would be eliminated.

The New Democratic Party has also released their entire platform which includes commitments of note including:
  • Increasing amortization periods on insured mortgages to 30 years for first-time homebuyers.
  • Increased consumer protection on financial transactions, and a requirement for financial advisors that their advice is in the best interest of the consumer.
  • Work with co-operatives and other stakeholders to create 500,000 new affordable housing units over the next 10 years.
  • Eliminating interest on student loans.
  • Increase corporate tax rates by 3%

Other parties have not yet released their entire platform, but are making specific announcements on a daily basis. Of note thus far:

Conservative Party:
  • Reviewing the B-20 stress test on mortgages and working with OSFI and working with OSFI to remove the stress test from mortgage renewals.
  • Increasing amortization periods on insured mortgages to 30 years for first-time homebuyers.
  • Increasing the RESP Grant from 20% to 30% on the first $2,500 of contributions annually, and from 40% to 50% on the first $500 of contributions annually for low-income Canadians.

Liberal Party:
  • An expansion to the First Time Homebuyers Initiative launched earlier this year, which would raise to current home value limit of $480,000 to as much as $789,000 for higher-cost markets such as Toronto, Vancouver, and Victoria.
  • Eliminate the “swipe fee” on HST and GST that merchants must pay to credit card companies every time a credit card is swiped.
  • Eliminate all fees from the Business Development Bank of Canada (BDC), Export Development Canada (EDC), and Farm Credit Canada, for business advisory services like mentorship and training to business owners.

If you have any questions or require further information, please contact Jay Denney.