GOVERNMENT UPDATES
Monday, December 7

PROVINCIAL GOVERNMENT UPDATE
Extension of PHO order on province-wide restrictions to January 8, 2021

By order and direction of the Provincial Health Officer, all events and social gatherings are suspended to significantly reduce COVID-19 transmission related to social interactions and travel, with the following updates:

• Drive-in and drop-off events: may proceed with a limited number of people and a COVID-19 Safety Plan in place. You can have a maximum of 50 cars in attendance. View examples here.
• Drive-thru events: Uncontrolled drive-thru events are suspended, as cars continually moving through a venue may exceed 50 at one time. Operators of drive-thru events can only continue to operate if they restrict the number of cars to 50 at one time. View examples here.
• Christmas and holiday celebrations: All December celebrations will look different this year. Celebrate with your immediate household or core bubble.  Consider hosting virtual parties and religious services, Unwrap gifts over Zoom or Skype, and if you must travel for essential reasons, review the health and safety precautions
• Adult indoor and outdoor team sports are suspended for people 19 years of age and older. View the full list here.

The order is in effect from November 19, 2020 at midnight to January 8, 2021 at midnight. View the full order update here.

Throne Speech highlights: actions to protect health, livelihoods

Today’s speech focused on the immediate actions government is taking to protect British Columbians’ health and livelihoods from the threat of COVID-19. In the months ahead, government will build on the measures already in place. Some initiatives will be extended or expanded, and new ones launched. View the full news release here.

• New Recovery Benefit: this will be rolled out by the end of the year. Families with a combined household income of less than $125,000 per year will be eligible to receive $1,000; families earning above that, up to $170,000, will receive payments on a sliding scale. Individuals earning less than $62,000 a year will be eligible for $500, with those earning up to $87,000 eligible for a payment on a sliding scale.
• Vaccinations: Preparations are underway to ensure that when a vaccine is available, it will be distributed to all British Columbians as quickly and safely as possible, beginning with those most at risk.
• Key investments in health care: this will allow more patients to receive treatment at home, reduce wait times, and train and hire more doctors and nurses.
• New tax measures: these steps will reward businesses for hiring, and help them grow and become more productive by making it easier for them to invest in equipment and machinery.

The focus is now on beating the virus, which will allow British Columbia to move as quickly as possible to address the economic recovery and its broader priorities: investing in people, strengthening communities, and supporting jobs and growth in a clean-energy future. The Government’s plans along these themes will be set out in more detail in a speech from the throne in the spring.

PREVIOUS FEDERAL GOVERNMENT UPDATE
On November 30, the Department of Finance Canada released the Annual Financial Report of the Government of Canada for 2019–20. This annual publication provides an overview of the government’s spending and revenue for the previous fiscal year and highlights the factors affecting these results.

The Deputy Prime Minister and Minister of Finance also released Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020. This plan will continue to protect Canadians’ health, jobs and the economy by doing the following:

• COVID-19 Safety: Investments in testing & tracing, procurement of PPE, measures to protect people in long-term care, and $150 million to improve ventilation in public buildings.
• Canada Emergency Wage Subsidy: increasing the maximum rate of CEWS to 75 per cent for the period beginning December 20, 2020 and extending this rate until March 13, 2021. This program will be there for businesses until June 2021.
• Canada Emergency Rent Subsidy and Lockdown Support: extending the current rates of CERS and Lockdown Support until March 13, 2021. This program will be there for businesses until June 2021.
• Highly Affected Sectors Credit Availability Program: New programs to support Canada’s hardest-hit industries, like tourism, hotels, arts and culture, and the air sector.
• Families with Young Children: Temporary support of up to $1,200 in 2021 for each child under the age of six for families entitled to the Canada Child Benefit.
• Sustainability Goals: Support for Canadians to make their homes greener and more energy efficient, a plan to plant 2 billion trees and laying the groundwork for a Canada-wide Early Learning and Child Care System.

PREVIOUS UPDATES

Click here to see previous updates.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

Justin Trudeau’s government, which has delivered the biggest COVID-19 fiscal response in the industrialized world, announced plans for another dose of stimulus and vowed to continue priming the pump as long as needed.

Finance Minister Chrystia Freeland unveiled $51.7 billion of new spending over two years in a mini-budget Monday, led by an enhanced wages subsidy for business. Freeland also pledged, without detailing, another $70 billion to $100 billion of additional stimulus over three years to spur the recovery.

But the finance minister clearly heeded calls for fiscal prudence. She put off any major structural spending announcements, promised any additional stimulus will be temporary and introduced new taxes on digital giants including Netflix, Amazon, and Airbnb, to help pay for it all.

“Our government will make carefully judged, targeted and meaningful investments to create jobs and boost growth,” Freeland said. It will provide “the fiscal support the Canadian economy needs to operate at its full capacity and to stop COVID-19 from doing long-term damage to our economic potential.”

Freeland revised higher the nation’s projected deficit this year to $381.6 billion, or 17.5% of GDP. That’s up from a deficit of 1.7% of GDP last year. According to estimates from the International Monetary Fund, no major economy will show a bigger fiscal swing in 2020.

The budgetary red ink is projected at $121 billion next year, before any additional stimulus. In total, spending linked to the government’s COVID response accounted for C$75 billion of this year’s deficit, and C$51 billion next year.

Based on Monday’s projections, the deficit is seen gradually narrowing to about $51 billion in two years and $25 billion by 2025.

The planned stimulus over the next three years will total no more than 4% of GDP, which the document said is in line with the Bank of Canada’s estimate of the level of slack in the economy. Freeland said, “fiscal guardrails” tied to the labour market would help determine the extent of the additional stimulus.

Among the measures announced today, Freeland boosted the government’s wage subsidy program (Canada Emergency Wage Subsidy, CEWS) to cover as much as 75% of payroll costs for businesses and extended its commercial rent subsidy and lockdown support top-ups until March. Both were slated to run out on December 20. The current cap on CEWS was 65%.

The federal government plans to create a new funding program to help restaurants, tourism companies and other businesses in industries hardest hit by COVID-19.

The Highly Affected Sectors Credit Availability Program (HASCAP), which was announced in the government’s fiscal update Monday, will offer eligible businesses loans of up to $1 million, with a 10-year term.

The money will be lent by banks or other financial institutions, but guaranteed by the federal government.

“We know that businesses in tourism, hospitality, travel, arts and culture have been particularly hard-hit. So we’re creating a new stream of support for those businesses that need it most — a credit availability program with 100-per-cent government-backed loan support and favourable terms for businesses that have lost revenue as people stay home to fight the spread of the virus,” Finance Minister Chrystia Freeland said in her prepared speech to the House of Commons.

Establishing a national childcare plan is a key long-term goal, with Freeland vowing a detailed plan in next year’s budget. In her forward to the fiscal update, she described the daycare strategy as “a feminist plan” that also “makes sound business sense.”

As a start, the Liberals are proposing in their fiscal update to spend $420 million in grants and bursaries to help provinces and territories train and retain qualified early childhood educators.

The Liberals are also proposing to spend $20 million over five years to build a child-care secretariat to guide federal policy work, plus $15 million in ongoing spending for a similar Indigenous-focused body.

The money is designed to lay the foundation for what will likely be a big-money promise in the coming budget.

Current federal spending on child care expires near the end of the decade, but the Liberals are proposing now to keep the money flowing, starting with $870 million a year in 2028.

There is also money for action on climate change. The government allocated C$2.6 billion in grants for homeowners to improve efficiency and $150 million over three years for electric vehicle charging stations.

The government also detailed some help for the hard-hit tourism sector, including funding for airports. But with Transport Minister Marc Garneau’s negotiations with airlines underway, there is no specific money for carriers including Air Canada and WestJet Airlines Ltd.

Bottom Line

There will continue to be great concern about the largest budget deficits since World War II. Does Canada really need the proportionately largest COVID fiscal response in the industrialized world?  The outlook is somewhat less dire than when the government released a fiscal snapshot in July. The unemployment rate at 8.9% is down materially from May’s 13.7% high but well above February’s 5.6%. The economy recovered ground through the third quarter, although the second wave of pandemic and ensuing restrictions undoubtedly will topple economic activity this quarter.

There is little worry that the government can sustain a massive deficit this year. It can, given low debt levels entering the crisis and historically low interest rates. But now that it has no fiscal guardrails, there’s a risk debt-to-GDP will continue to rise in the medium term if it continues to spend ambitiously.

The government is adding a new revenue source by taxing large digital companies. Still, in time, with this level of spending, they will be tempted to raise taxes on domestic sources, for example, hikes in the GST and higher capital gains taxes. This would be misguided, given the fragility of the recovery.

There is a greater risk that the government is overdoing the stimulus with vaccines on the horizon than undergoing it. Canada’s programs have been generous and household-focused compared to our G7 peers. The government must be strategic in assuring that new program spending is focused on future growth, beyond the pandemic, so that our debt-to-GDP will resume its downward trend. The risk is that once created; it is difficult to rein in spending.

SOURCE

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

The finalists have been chosen for this year’s Tri-Cities Chamber of Commerce Business Excellence Awards.

The nominees were announced last week and honored at a virtual finalist celebration held on Facebook live Nov. 8. 

“The Business Excellence Awards were created to recognize outstanding businesses in the Tri-Cities,” the chamber said in a press release. “Each of the nominated businesses and individuals has demonstrated excellence in business and a passion for our community.”

The finalists are:

• Business of the Year (1-10 employees)

Butter Studios

Engineered Bodies Strength & Conditioning

PlayWorks Physio

Labour Rights Law

• Business of the Year (11-30 employees)

Ballistic Arts Media Studios

G Force Gym

Eco Paving

• Business of the Year (30+ employees)

Rocky Point Ice Cream

Summit Labels

Woody’s Pub & Liquor Store

• Business Leader of the Year

Angela Calla, The Angela Calla Team

Sharon Perry, Sharon Perry & Associates, CPA

Bill Laidler, Laidler Group

• Not-For-Profit of the Year

Act2 | Child and Family Services

Immigrant Link Centre Society

Coquitlam Public Library

• Young Professional of the Year

Jessica Morrison, Squish Juicery

Yasaman Madanikia, Expressions Counselling

Paul Choi, Juris Notary

• Environmental Steward of the Year

Fulfill Shoppe

Port Moody Refillery

Wesbild

• Community Spirit Award

Coquitlam Centre

Malik Malikzada, Jamila’s Kitchen & Grill

Tri-Cities Community Foundations

• Business Resiliency Award

Legends Haul

Coquitlam Florist

Patina Brewing

Galactic Entertainment

Novo Textiles

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

You made it!! Once you have your down payment and have qualified for a pre-approved mortgage (your credit score is in order and all documentation has been provided), you are ready to start searching for your perfect home. Your Mortgage Professional can give you recommendations for a realtor, if you don’t have one already.

CLOSING TIPS

• Clean up your debt and credit score. These two things will carry you through your financial life, so it is important to learn the right habits and put the work in now.
• Get pre-approved! It is worth it.
• Stick to your budget! You went through a lot of effort to prepare it, so don’t look at anything over your budget (even if that house has a REALLY great pool!).
• Don’t forget about closing costs and additional fees! Leave room in your purchase price for these things.
• Ask questions! Anything you are unfamiliar with or are uncomfortable with, ASK! That is what your Mortgage Professional and realtor are here for.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program. The Bank is recalibrating the QE program to shift purchases towards longer-term bonds, which have more direct influence on the borrowing rates that are most important for households and businesses. At the same time, total purchases will be gradually reduced to at least $4 billion a week. The Governing Council judges that, with these combined adjustments, the QE program is providing at least as much monetary stimulus as before.

The global and Canadian economic outlooks have evolved largely as anticipated in the July Monetary Policy Report (MPR), with rapid expansions as economies reopened giving way to slower growth, despite considerable remaining excess capacity. Looking ahead, rising COVID-19 infections are likely to weigh on the economic outlook in many countries, and growth will continue to rely heavily on policy support.

In the United States, GDP growth rebounded strongly but appears to be slowing considerably. China’s economic output is back to pre-pandemic levels and its recovery continues to broaden. Emerging-market economies have been hit harder, especially those with severe outbreaks. The recovery in Europe is slowing amid mounting lockdowns. Overall, global GDP is projected to contract by about 4 percent in 2020 before growing by just over 4 ½ percent, on average, in 2021–22.

Oil prices remain about 30 percent below pre-pandemic levels. Meanwhile, non-energy commodity prices, on average, have more than fully recovered. Despite continued low oil prices, the Canadian dollar has appreciated since July, largely reflecting a broad-based depreciation of the US dollar.

In Canada, the rebound in employment and GDP was stronger than expected as the economy reopened through the summer. The economy is now transitioning to a more moderate recuperation phase. In the fourth quarter, growth is expected to slow markedly, due in part to rising COVID-19 case numbers. The economic effects of the pandemic are highly uneven across sectors and are particularly affecting low-income workers. Recognizing these challenges, governments have extended and modified business and income support programs.

After a decline of about 5 ½ percent in 2020, the Bank expects Canada’s economy to grow by almost 4 percent on average in 2021 and 2022. Growth will likely be choppy as domestic demand is influenced by the evolution of the virus and its impact on consumer and business confidence. Considering the likely long-lasting effects of the pandemic, the Bank has revised down its estimate of Canada’s potential growth over the projection horizon.

CPI inflation was at 0.5 percent in September and is expected to stay below the Bank’s target band of 1 to 3 percent until early 2021, largely due to low energy prices. Measures of core inflation are all below 2 percent, consistent with an economy where demand has fallen by more than supply. Inflation is expected to remain below target throughout the projection horizon.

As the economy recuperates, it will continue to require extraordinary monetary policy support. The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In our current projection, this does not happen until into 2023. The Bank is continuing its QE program and recalibrating it as described above. The program will continue until the recovery is well underway. We are committed to providing the monetary policy stimulus needed to support the recovery and achieve the inflation objective.

PRESS RELEASE

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.