Amid the whirlwind of political drama in Ottawa, the positive policies meant for Canadian seniors was largely ignored in the coverage of the 2024 Fall Economic Statement (FES). If the entire agenda is  implemented as planned, it could significantly improve financial security and quality of life for older Canadians.

 

Like most complex financial plans, some of the pieces in the FES can take place now while others will have to wait for the potential passing of the budget in 2025.

 

Here are some highlights, which can be put in place quite quickly:

 

         Making Mortgages Affordable

Key changes to mortgage rules will help seniors downsize or support their children in buying homes:

• Higher price caps for insured mortgages.
• Expanded eligibility for 30-year amortizations.
• Removal of the stress test for uninsured mortgage holders renewing with a new lender.

 

Enhanced Pensions for Seniors

Starting January 1, 2025, improvements to the Canada Pension Plan (CPP) will come into effect, offering:

• A larger Death Benefit for certain contributors.
• Extended eligibility for the disabled contributor’s child’s benefit.

 

Better Banking for Seniors

New agreements with Canada’s leading banks will bring modernized low-cost and no-cost account options. By December 1, 2025, Canadians seniors will have access to $0 and $4 accounts, improving financial inclusivity for seniors.

 

Encouraging Secondary Suites

The Canada Secondary Suite Loan Program will double its loan limit from $40,000 to $80,000, providing low-interest loans for renovations to add secondary suites, sometimes called ”granny” suites, to single-family homes.

 

Consumer-Driven Banking Tools

The government aims to implement new financial tools to make it easier for many senior Canadians to budget, manage household expenses, and save more effectively.

 

 

The following are promised improvements, which need legislation to come to fruition.

 

Rural top up for the carbon tax rebate

The rebate has been extended to 1.6-billion more Canadian seniors who live in rural communities. They will be eligible to claim the extra 20 per cent rebate next year. (Note: this will only occur if there is an amendment to the tax act.)

 

Automatic tax filing for seniors

After years of advocating for it, CARP is pleased to see that we finally have a promise that the CRA (Canada Revenue Agency) will be allowed to automatically file a tax return on behalf of certain low-income Canadians using the information it has available. The individuals will be sent these returns for their review before they are filed. This will benefit many seniors.

 

Exempting the Canada Disability Benefit from tax

 

Another CARP advocacy win will ensure recipients keep the full value of the Disability Tax Credit, which is designed to reduce poverty and increase the financial well-being of low-income, working-age persons. For this to occur, an amendment to the tax act is required.

 

Supporting non-profit and co-op residents by extending the Federal Community Housing Initiative, so that groups such as seniors’ co-housing will receive the rental assistance. This could take years to come to pass.

 

Tax Credit for Personal Support Workers

The government intends to introduce a new refundable tax credit for personal support workers, potentially modelled on the design of the tax credit for volunteer firefighters. This would positively impact seniors who are often helped by such workers.

If these commitments are realised, seniors across Canada will experience meaningful benefits. CARP will continue to monitor the government’s progress and advocate for these promises to be fulfilled. Stay tuned for updates!