QUESTION PERIOD — Finance
Canada's Inflation Rate
October 17, 2023
Senator Gold, I raised with you in June the IMF warning that Canada has the highest risk of mortgage defaults among advanced economies. Statistics Canada reported today that mortgage interest costs in September went up a staggering 30.6% year over year. This was the main contributor to inflation last month. It’s no wonder that Canadians are increasingly worried about keeping up with their mortgage payments and keeping their homes.
Will the Trudeau government stop the inflationary deficits that are fuelling high interest rates to keep Canada from a mortgage default crisis?
Thank you for your question. The position of the government is simply this: It has made investments in Canadians, our businesses and our infrastructure in order to assist Canada in going through these challenging economic times. Those investments have been successful in keeping our economy resilient and in maintaining Canada’s economic status and position.
The Government of Canada is also providing assistance and will continue to work to provide assistance to those who are facing challenges in obtaining and/or retaining their houses. It is the position of the government that their investments are not the cause of the high interest rates that are befalling not only this country but others as well.
Senator, the numbers speak volumes. This summer, RBC said that 43% of its residential mortgages were longer than 25 years, which is a jump of 40% in just one year. Early last year, RBC reported having no mortgages longer than 35 years; now they represent 23% of RBC’s mortgages.
Leader, why do you think it takes 25 years to save up for a down payment now when it used to take that long to pay off a mortgage? Isn’t it because the Prime Minister is not just worth the cost of — after eight long years —
Senator Martin, thank you. Your response, Senator Gold?
The Government of Canada understands very well the challenges that Canadians are facing with rising interest rates and the impacts they have, not only on their housing but on other choices they have to make. However, it is simply not the case that the responsibility for the problem lies with the federal government. The federal government is here to provide assistance, however.
