Steps being taken to Stabilize the Real Estate SectorIn addition to providing support for Canadians through the CERB and the CEWS, the government has taken steps to stabilize the real estate sector through several other measures:
* The Bank of Canada lowered its target for the overnight rate to 0.25.
* The Bank of Canada will be purchasing about $500 million in mortgage bonds per week.
* The Canada Mortgage and Housing Corporation will acquire up to $50 billion of insured mortgage pools.
* A deferral of GST and HST remittances and customs duty payments for businesses, including self-employed individuals, to June 30, 2020.
* Launch of the Canada Emergency Business Account, which will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs. The program will be implemented by eligible financial institutions in cooperation with Export Development Canada (EDC). Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000).
* Export Development Canada will guarantee new operating credit and cash flow term loans that financial institutions can extend to Canadian small and medium-sized enterprises (SMEs), up to $6.25 million.
* A co-lending program for SMEs where the Business Development Bank of Canada works with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.