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

Sep 6, 2023, 10:02 AM by Mortgage Professionals Canada

September 6, 2023 - Toronto, Ontario – Mortgage Professionals Canada

“While the central bank has held its key interest rate today, the housing affordability crisis remains a reality for Canadians across the country. That is why we will continue to advocate for more affordable homeownership, as the national mortgage industry association.

“Our latest consumer research shows that the share of Canadians considering selling their home because they cannot afford their mortgage payments has increased by more than three times since last year. This is according to our survey conducted earlier this summer. As a further result of the 22-year high interest rates, many Canadians who would typically be accessing the housing market to buy their first home are forced to change or delay their plans. In the same survey, 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.

“While there is no single solution or quick fix, there are concrete measures that can help.

“To help make homeownership more affordable and level the playing field for all homebuyers, the federal government could introduce a return to 30-year amortization periods for insured mortgages. It could also eliminate the stress test on mortgage transfers, switches and renewals to help Canadians find the financing solutions that best fit their budget. Finally, the government can 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.

“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, along with industry and civil society to tackle housing affordability.

“We are committed to keeping the dream of homeownership alive.”

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

For media inquiries, please contact:
Cecely Roy
Director, Communications
Mortgage Professionals Canada
Email: media@mpc.ca

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