Maple Leaf

2021 Federal Election

Summary of Federal Party Promises Which May Affect You and Your Clients




Mortgage Professionals Canada’s continuing effort to represent our industry to government was rewarded in recent weeks as each of the federal Liberal, Conservative, and NDP parties reached out to us to discuss their housing policies, and their now published election platforms related to housing and affordability.

While the Conservative’s and NDP’s platform were public at the start of the campaign, the Liberals' materials were published about a week into the race. Now they are all published and announced, we are able to provide you, our membership, with a comparison of their election housing platforms and promises. 

MPC is encouraged to see housing affordability take such a prominent place in the election, especially after our many discussions within MPC Hill Week in March, and numerous subsequent meetings with senior ministers, parliamentary critics, and policymakers. 

MPC informed all parties and policymakers that we believe the pressing and ongoing issues related to housing affordability in Canada require:

  • greater housing supply, especially through ensuring provinces and municipalities reduce the excessive supply headwinds caused by red tape, development charges, and NIMBYism
  • an insurable 30-year amortization option for first time buyers, up from current 25-year max
  • improvements to the FTHBI, if it was to be retained
  • removal of the stress test for mortgage holders wishing to change lenders at renewal, as long as they have a proven track record of making payments through their prior term, and aren’t taking on new mortgage debt
  • increasing the insured mortgage property purchase price cap from its current $1M, to reflect prices today, and adjustments for inflation going forward

We are pleased all three major parties have responded to at least part of MPCs requests of them during these past months. Below are the housing related announcements to date by the five represented parties in the House of Commons as of the election call, which should allow you to make informed choices for #Election2021.




Summary of Party Platforms:



Supply
Qualification
Anti-Fraud & Crime Measures
Financial Assistance
Miscellaneous

Supply

➤ 1.4 million homes in 4 years
↳ $4 billion dollar accelerator fund for cities
↳ Indigenous housing strategy promised
↳ $2.7 Billion over 4 years to National Housing Co-investment Fund
↳ $600 million for office space conversion
↳ Additional $567 Million to end chronic homelessness ($2.2 billion previously committed)
➤ 2 year ban on foreign,  non-resident purchases of residential property (excl. recreational)
➤ Flipper tax - 100% capital gains tax if owned < 12 months


Qualification

➤ FTHBI option for shared equity or deferred loan
➤ Increase insurance eligibility cap to $1.25 million, indexed to inflation
↳ 25% Mortgage insurance premium reduction


Anti-Fraud & Crime Measures

➤ Beneficial Ownership Registry
➤ New Federal Crimes Agency - anti-fraud and money laundering measures


Financial Assistance

➤ Double the Home Buyers tax Credit
➤ $40,000 tax free First Home Savings Account
➤ Reno tax credit of 15% (max $50,000 / $7,500) for family members
➤ Rent to Own Program - $1 Billion


Miscellaneous

➤ Stop excessive profits in the Financialization of Housing - possible new REIT tax 
➤ Discourage Renovictions, possible new rental income tax regime
➤ Home Buyers' Bill of Rights:
↳ ban on blind bidding
↳ disclosure of representation of both buyer and seller by same realtor
↳ Right to a home inspection
↳ Require consumers to be informed of options, including FTHBI
↳ Lenders must provide up to 6 month mortgage deferral for life events



Supply

➤ 1 million new homes in 3 years
↳ Leverage Federal Infrastructure investments
↳ releasing 15% of federally owned properties for housing
↳ include a "for indigenous, by indigenous" strategy 
↳ incent builders and investors with tax programs,
↳ investigate office space conversion
➤ 2 year ban on foreign, non-resident investment of residential property


Qualification

➤ Stress test exemption for renewing borrowers
➤ Stress test 'fix' for small business owners, contractors and other non-permanent employees
➤ Increase the $1 million insurable eligible cap (unspecified), and index to home price inflation
➤ Encourage 7-10 year terms


Anti-Fraud & Crime Measures

➤ Beneficial Ownership Registry
➤ Additional anti-fraud and money laundering measures


Miscellaneous

➤ Reimplement Housing First approach
➤ $325 million over 3 years to create 1000 residential drug treatment beds
 ↳ 50 recovery community centres across Canada

 


Supply

➤ 500,000 affordable units over 10 years, 50% in 5 Years
↳ create a fast-start fund to streamline project start ups
↳ dedicate federal resources and lands
↳ waive the federal GST on construction of affordable rental units
➤ 20% Foreign Buyers Tax for non citizens / non-permanent residents
➤ Flipper tax – capital gains increase from 50 to 75%


Qualification

➤ 30-Year Amortizations for First Time Buyers for Starter Homes
➤ Easier co-ownership funding through CMHC


Anti-Fraud & Crime Measures

➤ Beneficial Ownership Registry
➤ Additional anti-fraud and money laundering measures 


Financial Assistance

➤ Double the Home Buyers tax Credit



Supply

➤ Recommendation that 1% of total revenues be allocated to affordable and social, community and affordable housing initiatives
↳ All surplus federal properties should be used for this purpose
↳ Amend the NHS funding to support NPOs ad cooperatives acquire private market properties for conversion into social, community and affordable homes


Qualification

➤ Create a Quebec specific home ownership regime to account for unique and increasingly prevalent alternative ownership models 


Miscellaneous

➤ Ensure Quebec receives equitable share of funding for homelessness



Supply

➤ Build and acquire at least 300,000 units of “deeply affordable” housing in the next 10 years
➤ Help build and operate 50,000 supportive housing units in the next decade
➤ Fund the purchase of buildings by non-profit and cooperative affordable housing organizations


Qualification

➤ Refocus core mandate of Canada Mortgage and Housing Corporation (CMHC) on supporting the development of affordable, non-market and cooperative housing, “as opposed to its current priority of supporting Canadian lenders to de-risk investment in housing ownership”


Anti-Fraud & Crime Measures

➤ Close loopholes that allow foreign investors to conceal the names of beneficial owners of properties
➤ Crack down on money laundering in Canadian real estate


Financial Assistance

➤ Increase the Home Renovation Tax Credit amount from $10,000 per household to a per-person amount
➤ Remove “deemed” GST when a developer with empty condo units places them on the market as rentals
➤ Raise the “empty home” tax for foreign and corporate residential property owners 
➤ Change the legislation “that prevents Indigenous organizations from accessing financing through CMHC to invest in self-determined housing needs”
➤ Restore tax incentives for building purpose-built rental housing
➤ Tax credits for gifts of lands, or of land and buildings, to community land trusts to provide affordable housing


Miscellaneous

➤ Create national standards to establish rent and vacancy controls
➤ Appoint a Minister of Housing
➤ Appoint a federal housing advocate
➤ Redefine affordable housing using updated formula that accounts for regional variations
➤ Declare homelessness and housing “national emergencies”
➤ Spend 1% of GST on housing and municipal infrastructure
➤ Keep the eviction moratorium in place until pandemic is over
➤ Assess the role of real estate investment trusts (REITs) in Canada’s housing market
➤ Require that federally funded housing developments ensure that 30% of all units in each development “must be deeply affordable and/or available to people with disabilities and special needs”
➤ Allocate funding towards urban Indigenous housing providers
➤ Develop and implement an Urban, Rural, and Northern Indigenous Housing Strategy







MPC’s mission statement is simple: Advancing the mortgage broker channel. In our advocacy efforts, we strive to be Canada’s unified, authoritative voice of the mortgage broker channel, and through the considerable time and contributions of many volunteer members, I can confidently state this is how we are now widely regarded. I understand that voting is a deeply personal activity, and many factors will drive each of your personal choices. MPC is deliberately non-partisan, and I have no request of you other than to please ensure to exercise your right and vote for the party of your choice. As an association representing individuals working in the housing finance sector, our presentation of the respective parties’ housing platforms is made to assist you when weighing all elements of your decision.

We always welcome your questions and comments so please do not hesitate to contact me directly, or J.P. Boutros at jpboutros@mortgageproscan.ca.

Thank you,            

Paul Taylor
President and CEO
ptaylor@mortgageproscan.ca