The Federal Government's 2012 budget could be described as slow and steady, with some unique changes weaved in. Finance Minister Jim Flaherty wants to cut $5.2 billion in spending over the next 3 years in hopes that Canada can dig itself out of deficit by 2015.
- When it comes to the housing market, Jim Flaherty has made it clear that he will not interfere. A week before he introduced the federal budget he poignantly told reporters he’d “quite frankly” like the market to “correct itself.”
- Changes may be coming to the Canada Mortgage and Housing Corporation. The budget proposes amendments to strengthen the oversight of CMHC and to ensure it’s managed in a way that helps the stability of the financial system.
- The most expected, budget commitment is the change to Old Age Security (OAS) retirement age eligibilities to 67 from 65 starting in 2023. Good news for anyone 54 or older as of March 31, 2012 as they will not be affected by this change. For the rest of us we will have to wait two years longer to get the government benefit.
- The promise is Ottawa will run a $21 billion budget deficit in the 2012-13 fiscal year, with overall spending set at $276 billion. And the Conservatives will balance Ottawa’s books by 2015.
- 19,200 federal government jobs are being eliminated with most of the cuts being felt around Ottawa. Many pink slips have already been handed out at several departments including National Defence, the Public Service Commission and the Federal Economic Development Agency for Southern Ontario.
- The Government will invest $1-billion to support science and technology research and development.
- Also at an annual saving of $11 million dollars, the beloved penny will be phased out starting this fall. But it will still hold value for spending.
AKAL Mortgage is pleased the budget did not make any major announcements that would affect Canadians ability to borrow to buy their dream home. If your clients have any concerns about home loans, as always AKAL Mortgage is here to help. We continue to offer the great service all our clients are accustomed too. We would be happy to answer any questions about mortgages that your clients might have.