The Government of Canada, along with the Bank of Canada, have enacted a set of measures to support the economy and bolster financial stability. This includes facilitating increased lending and lowering interest rates in order to add liquidity to Canada’s economy. The following provides a brief summary of these government programs, including details relating to eligibility, how to apply and general terms and conditions, as applicable. We will endeavour to update this page on a daily basis. However, for a complete and up to date description, please consult the applicable program webpage. Should you have any questions, please feel free to reach out to a Goodmans lawyer. Programs include:
- Insured Mortgage Purchase Program
- Bank of Canada's Actions
- Office of the Superintendent of Financial Institution's ("OSFI") Action
- Relief for Federally Regulated Pension Plan Sponsors
- The government will purchase $150 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). This will provide stable long-term funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market
- CMHC is also expanding the issuance of Canada Mortgage Bonds to a total annual issuance amount of up to $60 billion, depending on market conditions and investor demand.
- Participation rules, eligibility details and deadlines are outlined here.
How to Apply
- Details on how to apply can be found here.
- The Bank of Canada has lowered interest rates, is intervening to support key financial markets, and is providing liquidity support for financial institutions.
- This aims to: provide stable long-term funding to banks and mortgage lenders; help facilitate continued lending to Canadian consumers and businesses; and add liquidity to Canada’s mortgage market.
- OSFI has taken a number of actions to support the resiliency of federally regulated financial institutions and improve the stability of the Canadian financial system, including:
- lowering the Domestic Stability Buffer by 1.25% which will allow Canada’s large banks to inject $300 billion of additional lending into the economy
- suspending consultation on the minimum qualifying rate for uninsured mortgages; and
- reviewing its supervisory and regulatory priorities to align with current conditions
Relief for Federally Regulated Pension Plan Sponsors
- Temporary relief is being provided to sponsors of federally regulated defined benefit pensions. The Government is providing a moratorium until the end of 2020 on solvency payments requirements for these plans.