Canada’s Government Just Found Billions in Extra Cash—And Your Mortgage Might Pay the Price
When you get an unexpected bonus at work, you have a choice: pay off your credit card or buy a new TV. Canada’s federal government just found itself in that exact position with billions in extra tax revenue, and they have decided to go shopping. This choice will have a direct impact on how much interest you pay on your debt, how far your paycheck stretches at the grocery store, and how soon you can expect some relief from high costs. What's Going On The Canadian federal government is currently sitting on a mountain of unexpected cash. Tax revenues—the money taken from your income and the profits of local businesses—have outperformed expectations, leaving Finance Minister Chrystia Freeland with a significant surplus of funds that wasn't there just a few months ago. This happened largely because the economy was more resilient than economists predicted, leading to higher corporate profits and more people working. Normally, a government might use this extra money to pay down the na...