30 Apr

Canadian Federal Budget 2024: Higher Deficits, Higher Government Spending, And Higher Taxes for the Wealthy


Posted by: Danny Benjamin

Federal budget targets rich Canadians for new spending

The budget focuses on helping Millennial and Gen Z voters experiencing rising housing costs and other inflationary pressures. The government has set fiscal anchors, such as keeping the deficit below 1% of GDP starting in 2027.

The Canadian federal government released its 2023 budget over a year ago, promising to conduct a strategic spending review to find $15.4 billion in savings. The savings were supposed to achieve fiscal credibility by offsetting the $43 billion in new government spending. However, nearly a year after its announcement, the spending review found only $9 billion in savings, while the government piles on new spending measures in this year’s budget.

The fiscal path is mostly the same as in the 2023 Fall Economic Statement, but only after revenue gains from a resilient economy and further tax increases triggered even bigger spending initiatives.

Government spending is expected to be $480 billion in the next fiscal year, including $54 billion in payments on the country’s debt.

Finance Minister Freeland also announced a soak-the-rich tax scheme, levelling higher taxes on capital gains for people who make more than $250,000 selling stock or property other than a person’s primary residence.

Currently, 50% of capital gains profits are taxed, compared to 100% of a person’s employment income. That will remain the case for the first $250,000 of capital gains income, but it will rise to 66.6% on income above that level. So, the proposal is to reduce the tax-exempt amount to one-third for capital gains exceeding $250,000.The lower exemption would also apply to businesses for all capital gains, not just those over $250,000. The additional capital gains taxes are expected to rake $19.4 billion into the government’s coffers over the next five years, which is no small measure. This will reduce business capital spending, already at rock-bottom lows, rendering the Canadian productivity problem even more egregious. Higher capital gains taxes also disincentivize investment in residential rental real estate. 

The FY24/25 budget deficit is estimated at $39.8 billion (1.3% of GDP), with the numbers massaged just enough to meet the various ‘fiscal guideposts’. Any path to a balanced budget continues to be absent.

Bank of Canada Governor Tiff Macklem has said provincial government spending is already making it harder to lower inflation. Running federal deficits — on top of large provincial deficits in Quebec, Ontario and British Columbia — is irresponsible. The government had previously set fiscal anchors, like keeping the deficit below 1% of GDP starting in 2027.

Philip Cross of the National Post writes, ”deficit spending when inflation is above target violates the 1991 accord between the Government of Canada and the Bank of Canada, which “jointly set forth targets for reducing inflation” and requires both parties to collaborate to achieve that goal.”

Cumulatively, the total deficit between FY23/24 and FY28/29 is now running $10 billion larger than in the Fall Economic Statement.

The Housing Plan

The housing measures were pre-announced, and the market impact should be minimal. However, the higher capital gains inclusion rate will impact those planning to sell valuable properties with much lower cost bases. It will change the economics of real estate investment in rental properties, an area that needs to be more generously funded. 

Some Other Housing Measures:

Allowing 30-year mortgage amortizations for first-time home buyers purchasing new builds. This measure zeroes in on a small subset of the market. In general, though, it stokes excess demand and ultimately does little to improve affordability once prices adjust. Also, limits on the size of insured mortgages mitigate its impact in our most expensive cities. Pre-construction sales usually require a 20% downpayment, which limits the use of insured mortgages, which account for only 15% of mortgage originations.

Increase the RRSP Home Buyers’ Plan limit from $35,000 to $60,000 and extend the three-year payback period.


Create a renters’ bills of rights and tenant protection fund. Some details here are curious, such as a national standard lease agreement (which is provincial jurisdiction). At any rate, the deck is stacked against landlords from bringing more quality rental supply to market—think taxes.

Accelerated capital cost allowances on the construction of new purpose-built rentals and removal of the HST on the construction of student rentals.

Increase the annual Canada Mortgage bond limit to $60 billion from $40 billion.

Top up the Housing Accelerator Fund to incentivize the removal of zoning barriers and tie transit funding to densification along transit corridors.

Bottom Line

This is a pre-election ‘tax and spend’ budget, which will do little to address the problems it claims to solve. It exacerbates other concerns, including insufficient business capital spending, low productivity growth, and insufficient investment in rental real estate.

Slowing the growth in nonpermanent immigration will, in time, do more to address the housing shortage than any of these measures.

Please Note: The source of this article is from SherryCooper.com/category/articles/

Ready to take the next step in your mortgage journey? Contact me (Danny Benjamin – 289-455-8801) today for personalized advice and expert guidance. Whether you’re considering a mortgage consultation, refinancing, mortgage renewal, or exploring home equity options, I’m here to help. Let’s turn your homeownership dreams into reality! #MortgageConsultation #Refinancing #MortgageRenewal #HomeEquity #ContactMe #MortgageBroker #MortgageAgent

22 Apr

Boost Your Home’s Value with These Yard Appeal Ideas!


Posted by: Danny Benjamin


Summer’s the perfect time to spruce up your yard. Maximize your space with these high-ROI concepts, elevating equity and curb appeal simultaneously!

1. Sustainable Landscaping: Opt for native plants, drought-resistant foliage, and xeriscaping to conserve water and amplify your yard’s natural charm. Consider rain gardens and drip irrigation for eco-friendly options.

2. Outdoor Structures: Create inviting spaces with pergolas, arbors, or gazebos, defining areas for entertaining or relaxation while adding architectural flair.

3. Lawn Upgrades: Elevate your yard’s look with professional lawn care services, aerating, overseeding, and regular maintenance. Explore options like artificial turf for a hassle-free alternative.

4. Water Features: Enhance tranquility with fountains, ponds, or waterfalls, bringing visual interest and attracting wildlife for a luxurious feel.

5. Privacy Enhancements: Enjoy your yard in peace by incorporating strategic landscaping, fencing, or screening. Tall hedges, lattice panels, and climbing plants offer seclusion and beauty.

Incorporating these extra suggestions with your existing plans will turn your yard into a delightful oasis, boosting enjoyment and delivering substantial ROI.


Danny Benjamin


16 Apr

5 Expert Tips to Manage Financial Stress in Today’s Economy


Posted by: Danny Benjamin

In today’s economic landscape, the rise of inflation, interest rates, and overall cost of living can leave many feeling overwhelmed. But fear not! We’ve compiled five expert tips to help you navigate and overcome financial stress in these uncertain times:

1. Prioritize What You Can Control: Instead of fixating on factors beyond your control, focus on managing what you can. Review your expenses, such as phone bills and grocery costs, and identify areas where you can cut back or find more affordable alternatives. By taking proactive steps to reduce expenses, you’ll regain a sense of control and alleviate stress.

2. Pay Essential Bills First: When facing financial strain, prioritize essential bills to ensure critical expenses are covered. This approach helps prevent the anxiety of scrambling to decide which bills to pay and identifies opportunities to eliminate unnecessary spending temporarily. By establishing clear priorities, you’ll better manage your finances and reduce stress.

3. Automate Payments and Savings: Simplify your financial management by automating bill payments and savings contributions. Setting up automatic transfers ensures bills are paid on time, minimizing the risk of missed payments and associated penalties. Additionally, automate transfers to a savings account to build a financial safety net and reduce the temptation to spend impulsively.

4. Explore Additional Income Opportunities: Supplement your income by exploring part-time work, consulting opportunities, or requesting a raise at your current job. Generating additional income can alleviate financial strain and provide greater financial flexibility. Take advantage of your skills and expertise to pursue income-generating opportunities that align with your interests and schedule.

5. Consult with Your Mortgage Professional: Your mortgage is likely your most significant monthly expense, so it’s essential to explore options for optimizing your mortgage terms. Schedule a consultation with your mortgage agent to discuss refinancing options, adjusting payment schedules, or exploring alternative mortgage products with better rates. Openly communicate your financial situation and goals to identify personalized solutions that alleviate stress and improve cash flow.

By implementing these expert tips, you can effectively manage financial stress and navigate today’s economic challenges with confidence. Remember, there are always solutions available to help you achieve financial stability and peace of mind. If you’d like personalized advice or assistance with your mortgage, don’t hesitate to reach out to me. I am here to support you every step of the way.

Danny Benjamin



2 Apr

5 Expert Tips to Manage Financial Stress Amid Economic Uncertainty


Posted by: Danny Benjamin



In today’s volatile economy, rising inflation and interest rates can leave many feeling overwhelmed. But fear not! We’ve curated five actionable strategies to help you navigate financial stress and emerge stronger:

1. Focus on the Controllable: Take charge of your finances by identifying areas you can control. Evaluate expenses like phone bills and groceries to find opportunities for savings, empowering you to regain control and alleviate stress.

2. Prioritize Essential Bills: When facing financial strain, prioritize essential bills to ease anxiety and uncover unnecessary spending. By identifying areas for reduction, you can streamline your budget and achieve greater financial stability.

3. Automate Finances: Simplify bill payments and savings with automation to avoid missed deadlines and penalties. Set up automatic transfers to your savings account to ensure consistent contributions, bolstering your financial security.

4. Explore Additional Income Streams: Supplement your income by exploring part-time work or consulting opportunities. Discuss potential raises with your employer to increase your cash flow and enhance financial resilience.

5. Consult with a Mortgage Professional: Your mortgage is a significant monthly expense, so don’t hesitate to seek guidance from a mortgage agent. Explore options to adjust your payment schedule or refinance for better rates, ensuring your mortgage aligns with your financial goals.

By implementing these strategies, you can effectively manage financial stress and achieve greater peace of mind. For personalized financial advice and support, reach out to me today. Let’s navigate these economic changes together!


Danny Benjamin