What's behind Trudeau's $19-billion about-face?

Plus, who's at risk of mortgage default and Toronto's growing police budget  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

First Up   By Manuela Vega   Good morning. Here’s the latest on plans to buy F-35 fighter jets, financial hardship ahead for homeowners and the Toronto police budget.       DON’T MISS Canadian Press File Photo   federal politics In a massive about-face, the Trudeau government will spend $19 billion on F-35 fighter jets With the price set to soar as high as $70 billion over the next few decades, the Trudeau government will now invest in what it once dismissed as an unnecessary tax nightmare for Canadians, Stephanie Levitz reports. “As our world grows darker, with Russia’s illegal and unjustifiable invasion of Ukraine and China’s increasingly assertive behaviour in the Indo-Pacific, this project has taken on heightened significance,” Defence Minister Anita Anand said Monday. Here’s what we know about the criticism against the fighter jets — and the Liberals’ recent changes to defence spending. Wait, what? During the 2015 campaign, Justin Trudeau promised the Liberals would never buy F-35s, citing technical specifications and the cost. “That F-35 might be Stephen Harper’s dream, but I can tell you for Canadian taxpayers, it’ll be a nightmare,” he said. Go deeper: Pressure for Canada to increase its defence spending and readiness is a long-standing ask from the U.S. The change precedes a meeting this week between Trudeau and U.S. President Joe Biden.   Canadian Press File Photo   real estate Tens of thousands of Canadians could default on mortgages As rates rise and homeowners struggle to make their monthly payments, CEOs at Canada’s biggest banks are estimating that a small percentage of their borrowers are at risk of defaulting on their mortgages. At Scotiabank, for instance, 2.5 per cent or about 20,000 mortgage clients could be vulnerable, its incoming CEO said. Plus, millions of other borrowers at Canadian banks are set for financial hardship as they renegotiate fixed-rate mortgages or make ever-higher monthly payments on variable-rate loans, Christine Dobby reports. Take a closer look at the rising costs. Bad news for: Homeowners with low credit scores and homes that aren’t worth much more than their mortgage. Borrowers who default on their mortgages tend to fall under these categories, the CEOs said. Meanwhile: The CEOs said household savings built up during the pandemic, a strong labour market and an overall increase in home values in recent years should provide a cushion for most customers. By the numbers: The number of Canadians who actually fall into arrears of three months or more on their mortgage payments has been historically low. For most of the past two decades, it has ranged from about 10,000 to 20,000 in any given month.   Melissa Renwick/The Star   policing Amid blistering criticism, the Toronto Police Board has voted unanimously to increase the force’s budget The Toronto Police Services Board has voted to add $48 million to the police budget — as proposed by Mayor John Tory — which would bring its total to $1.16 billion. The 4.3 per cent increase is nearly double the boost police received in 2022, making it the biggest increase since the beginning of the pandemic, Jennifer Pagliaro reports. While the police chief called the budget “fiscally responsible,” advocates who spoke at the police board Monday called it a “black hole” that is robbing communities of support services and infrastructure improvements. Here’s what the police service — and critics — had to say at the board meeting. Watch for: The final decision on any new spending is up to city council as the month-long budget process begins Tuesday. By the numbers: The pandemic wreaked havoc on the city’s finances. Just how dire are the figures? We’ll find out Tuesday morning. POV: As someone who grew up around gun violence, I know policing hasn’t taken us out of the crisis before — and it won’t now.       WHAT ELSE   Think the threat to Canada’s democracy has passed? Just look south — and keep looking.   The Halton school board ordered a teacher dress code after the Oakville controversy. A judge handed down an 18-year sentence in the “brutal” 2019 manslaughter of a homeless man on a downtown Toronto street.   Doug Ford’s housing bill set the stage for lost development fee revenue. Mississauga’s proposed budget is hinting at trouble ahead. John Tory’s reckless budget strategy seems to accept long-term pain as a reasonable tradeoff for short-term gain.   Trains will soon run again between Toronto and Northern Ontario. But first, they’re going in the freezer. We’re already over-prescribing. Allowing pharmacists to prescribe medications could make a serious problem worse.   Why did the Taliban’s promises of change evaporate? Here’s who is really calling the shots in Afghanistan. A tribute to beloved Toronto Star photographer Vince Talotta was the kind gesture of a stranger.   His wife died after a seven-hour wait in the ER. Now this Nova Scotia man wants answers. Now Magazine will go digital-only after being acquired by Gonez Media. Here’s what we know.   You know Dry January. Would you try Veganuary? Inside the rise of people going plant-based.       GET THIS Cameron Tulk/The Star You’ll need a bigger income to qualify for a mortgage in 2023 — and that’s not the only trouble ahead. Check out these graphs.       CLOSE-UP Emergency Response Centre International/Instagram   LESVOS: Emergency Response Centre International — a now-defunct registered non-governmental search-and-rescue organization — conducted rescues in the Mediterranean from 2016 to 2018. Greek authorities have since arrested the group’s members. Here’s a look inside what some human rights groups are calling an escalation in the criminalization of humanitarian aid.     Thank you for reading. You can reach me and the First Up team at firstup@thestar.ca. I’ll see you back here tomorrow.     If you're not enjoying these emails, please tell us how we can make them better by emailing newsletterfeedback@thestar.ca. Or, if you'd prefer, you can unsubscribe from this newsletter by clicking the first link below.   Unsubscribe From This Newsletter Sign Up for More Newsletters and Email Alerts View in Browser Toronto Star Newspapers Limited. One Yonge Street, 4th Floor, Toronto, ON M5E 1E6. 416-367-2000 PRIVACY POLICY