Finance Committee on Dec. 7th, 2023

[Chrystia Freeland, Liberal, University—Rosedale, ON]

As I have said, it's a very worthwhile question. I do want to emphasize there was strong support—I quoted Mike Moffatt, but it's not just from him—across the country on the total elimination of the GST. I've heard from a lot of people that it's getting more homes built. Everyone obviously would like easing tax measures to be retrospective, and there are a lot of people talking about that. As I said, my bias is towards doing things leaning into the future so that we can create an incentive for even more homes to be built.

I am happy to talk to people about specific affordable housing projects that are in a challenging situation right now.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Right on. Well, we would be happy to get that information promptly.

One of the issues my colleague Lori Idlout has raised a lot is about housing in Nunavut.

Of course, there has been some distinctions-based funding awarded to Inuit governments that operate in Nunavut, but when it comes to the territorial government, which also has an infrastructure deficit and does serve a slightly different population—because it is a different jurisdiction, after all—the federal government's answer always has been for the territorial government to apply to national indigenous organizations to access that funding for their territory.

There is clearly a need for more resources for the territorial government. That's been estimated at around $250 million. Is that something your government is looking at announcing in the next budget?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I'm not making any budget announcements today for sure.

[Some hon. members]

Oh, oh!

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I'm very happy to continue discussions about areas that it would be good to focus on in the budget.

I will say just to your specific question that our government believes, as I hope everyone here does, that a distinctions-based approach is really important. It's an important part of reconciliation. We also do have good conversations with the governments of the provinces and territories across the country, very much including Nunavut, and I think we need to be having conversations on both of those paths.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

However, you do recognize the difference between indigenous governments and territorial governments, and the need for both to be adequately resourced in order to meet the housing needs of our population.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

As I said, we have a distinctions-based approach. I think that's an important part of reconciliation. We also recognize that one of the important things regarding housing, and a plethora of other issues, is for the federal government to work constructively with the provinces and territories across the country, very much including Nunavut.

I know that in your opening comment—

[The Chair, Liberal, Peter Fonseca]

MP Blaikie, that is the end of our first round. We are moving into our second round. We do not have full time for a full second round, but we did start a couple of minutes late. Between all parties, each party will have approximately four minutes with the minister to ask questions.

We're starting with MP Chambers for four minutes please.

[Adam Chambers, Conservative, Simcoe North, ON]

Merry Christmas, Minister, welcome back. Mr. Forbes, congratulations on your new role.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Merry Christmas, Mr. Chambers. I thought Mr. Lawrence was going to ask me a question, and I was going to take the opportunity to say Merry Christmas to his son James, who is here with us. Merry Christmas, James, and thanks for being here.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Thank you, Minister.

[Adam Chambers, Conservative, Simcoe North, ON]

Minister, I understand that 250,000 Canadians have opened a first home savings account. Can you provide to the committee how many deposits have been made to those accounts?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Let me start with a correction. It's actually 300,000 Canadians who have opened first home savings accounts. That's a really good positive number. What that says is that there are 300,000 Canadians—by definition, principally young Canadians, because it has to be for your first home—who are actually saying, “I want to buy my home, and I'm saving money for it.” That's really positive.

[Adam Chambers, Conservative, Simcoe North, ON]

Can we get the number of deposits to those accounts, Minister?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Let me just ensure that we're all clear that it's 300,000 and not 250,000. That's a material difference.

[Adam Chambers, Conservative, Simcoe North, ON]

Will you commit to providing the committee with the deposits?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I'm always happy to update Canadians on the first home savings account that our government put in place. It was opened in April, and makes a real difference for Canadians. It shows young Canadians, 300,000 of them, believe in saving for their first home.

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much.

I have a question regarding the mortgage charter.

Uninsured mortgage holders don't have to go through the stress test. Why are we not giving the same relief? Why is the government not giving the same relief to insured mortgage holders? Why do they still have to go through the stress test on a renewal? There are at least 1.2 million householders who are insured mortgage holders.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chambers, I don't mean this in an argumentative way, but you have it the wrong way around. It's insured mortgage holders who don't need to requalify.

[Adam Chambers, Conservative, Simcoe North, ON]

I apologize.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

That's an important distinction.

[Adam Chambers, Conservative, Simcoe North, ON]

It's a very important distinction, and I apologize for mixing that up. Why do uninsured mortgage holders have to go through the stress test? There are at least 1.2 million uninsured mortgage holders.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

It is important not to confuse the two, because there is a very big distinction. Insured mortgages, by definition, are insured. I'm underscoring this because the initial question was wrong. When you talk to OSFI and the regulators who are responsible for determining the sanctity of our financial system, it makes a very clear distinction between insured and uninsured mortgages. That's the reason for the different treatment.

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much.

By definition, uninsured mortgage holders are less likely to default, because they've provided at least 20% down or more.

Why are you forcing them to go through the stress test?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Again, let's be clear on the responsibilities that our Superintendent of Financial Institutions has for guaranteeing the sanctity of the Canadian banking system. As Canadians, we should be really proud that we have a safe and stable banking system. I have a lot of respect for our institutions, and I always will. Insured mortgages, by definition, have an insurance policy that backstops them. That creates a very different impact on our financial system.