Statement by Mortgage Professionals Canada President and CEO on Bank of Canada Rate Decision

Oct 25, 2023, 10:02 AM by Mortgage Professionals Canada

October 25, 2023 - Toronto, Ontario – Mortgage Professionals Canada

“While the central bank has held its key interest rate today at 5.00%, the housing affordability crisis still remains an issue for Canadians from coast to coast. That is why, as the national mortgage industry association, we will continue to advocate for more affordable homeownership.

“Our latest consumer research shows that three-quarters of non-homeowners said they will alter their purchasing plans as a result of rate changes, with close to a third saying that they will delay purchasing a home. The survey is also shows that half of non-homeowners believe they will never purchase a primary residence.

“There is no overnight solution, but there are concrete measures that can help.

“Earlier this month, we engaged with the federal government and decision makers at federal Hill Day in Ottawa to advocate for our zero-cost recommendations that would help address this growing crisis. To help make homeownership more affordable and level the playing field for all homebuyers, we recommend the federal government re-introduce 30-year amortization periods for insured mortgages. The government can also act on its platform commitment to increase the insured mortgage cut-off from $1 million to $1.25 million and index it to inflation to better reflect today’s housing prices.

“Addressing housing supply and affordability issues is critical and requires coordination across levels of government, industry and civil society to develop harmonized solutions to these pressing problems, as well as sharing best practices across jurisdictions. A permanent National Housing Roundtable comprised of these groups, established by the federal government, could also help ensure effective action. We need all governments to work together to tackle housing affordability.

“We will continue to advocate on behalf of Canadians and their dream of home ownership.”

Lauren van den Berg, President & CEO, Mortgage Professionals Canada

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