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Canada Trudeau says budget measures will help Canadians weather Bank of Canada rate hike

20:26  13 april  2022
20:26  13 april  2022 Source:   msn.com

Budget 2022: Tax-free savings account coming for first-time homebuyers

  Budget 2022: Tax-free savings account coming for first-time homebuyers The 2022 federal budget had a host of housing announcements, including a new tax-free savings account for first-time buyers and plans to ramp up the pace of building. The Liberal government is planning to spend $10.14 billion on housing over the next five years in its 2022 federal budget, looking to make homes more affordable by expanding supply and helping young Canadians save for their first home.

LAVAL, Que. — Measures in the recently tabled federal budget such as a tax-free savings account for first-time homebuyers will help Canadians weather the Bank of Canada's new interest rate hike, Prime Minister Justin Trudeau said Wednesday.

  Trudeau says budget measures will help Canadians weather Bank of Canada rate hike © Provided by The Canadian Press

Earlier in the day, the Bank of Canada raised its key interest rate by half a percentage point to one per cent — its highest rate hike in more than 20 years — which is expected to affect the cost of bank loans, including variable-rate mortgages.

"In the budget we put forward a plan to address the housing crisis that too many families are living through," Trudeau told reporters in a suburb north of Montreal, responding to a question about the interest rake hike.

COMMENTARY: 2 prime ministers named Trudeau, 2 minority governments — and 2 very different budgets

  COMMENTARY: 2 prime ministers named Trudeau, 2 minority governments — and 2 very different budgets In 2022, Justin Trudeau leads a minority Liberal government propped up by the NDP, just like his father in 1973. Yet as Howard Anglin explains, budget 2022 reveals differences.But there is another contrast that is less expected, and perhaps more telling. It is the contrast between this year’s budget and the Liberal budget from 1973 — the last time the NDP agreed to prop up a Liberal minority. That government was also, of course, led by a prime minister called Trudeau, but the budget speech delivered by then finance minister John Turner was a world away from the one Chrystia Freeland delivered Thursday.

Other than the tax-free savings account, he said the budget for the 2022-23 fiscal year includes measures to double housing construction starts across the country and to "crack down" on speculation, including by limiting market access of foreign buyers.

"We know that there isn't any one thing any government can do," he said about the high cost of living in Canada. "Every family is a different situation, and the approach we take has to be multi-faceted."

The prime minister also responded to accusations by federal Tory leadership candidate Pierre Poilievre, who has said municipalities across Canada are helping to keep housing prices high by causing construction delays and adding costs. Poilievre wants the federal government to pressure cities to reduce bureaucracy and lower the costs involved in building homes.

Trudeau said his government is investing billions of dollars and partnering with cities to accelerate housing starts, "instead of talking about it, as some Conservatives are doing."

"It's good to see other parties agreeing with us that that's the best path forward," he added.

This report by The Canadian Press was first published April 13, 2022.

The Canadian Press

Bank of Canada hikes key interest rate 50 basis points for 1st time in 22 years .
The Bank of Canada is raising its key interest rate by half a percentage point, up to an even one per cent, in its first move of that magnitude in more than 20 years.The central bank’s key overnight rate now stands at one per cent.

usr: 0
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