September 18, 2023 – Toronto, Ontario
“On behalf of the Mortgage Professionals Canada (MPC) and our 15,000 members across the country, we want to welcome the return of all Members of Parliament to the House of Commons. With excitement and anticipation, all eyes will be on Parliament to see how the government will tackle housing and the cost of living, as pressure mounts.
“Let’s face it, we are well into a housing affordability crisis in Canada. With mortgage costs up 81% since the Bank of Canada rate hike cycle began, affording a home is one of the most pressing political issues facing Canadians.
“According to our latest Semi-Annual State of the Housing Market Report measuring consumer intentions in June and July, half (48%) of non-owner respondents say they will never purchase a primary residence. This is up 15 points from the last survey conducted just six months earlier at the end of 2022.
“Despite this, homeownership is still perceived by Canadians as a good long-term investment. In fact, the same recent polling conducted on behalf of MPC by Bond found that regret is rare among homeowners, with 9-in-10 happy with their decision to purchase, even in the current rate environment.
“One of our key policy recommendations to the federal government is to deliver on the Liberal 2021 platform commitment to increase the insured mortgage cut-off from $1 million to $1.25 million, and index it to inflation. Adapting this policy to reflect today’s housing prices will help more first-time homebuyers access the housing market. As the policy currently stands, homes over $1 million don’t qualify for mortgage insurance and require a 20% deposit. The average price of a home in Vancouver and Toronto is over $1.1 million.
“To provide homeowners with more flexible financing solutions, the federal government can re-both introduce 30-year amortization periods for insured mortgages and eliminate the stress test on mortgage transfers, switches, and renewals.
“There is no single solution to addressing today’s housing and mortgage affordability issues. However, prioritizing practical solutions now to improve conditions over the short, medium, and long-term, can begin to alleviate pressure on Canadians, and keep the dream of homeownership alive. We ask that all parliamentarians keep this top of mind as the fall session gets underway.”
"We are encouraged to see actions addressing housing affordability on both sides of the political aisle and look forward to cooperation on housing measures moving forward.”
About Mortgage Professionals Canada
We are Canada’s mortgage industry association with over 15,000 members and more than 1,000 member firms. We are a non-profit association representing mortgage brokers and agents, as well as banks, lenders, insurers, and service providers, making up the largest network across the country.
We are proud to be the industry that provides Canadians with choice when making the most important financial decision of their lives and help people achieve the dream of home ownership. You can find one of our licensed members at findmeabroker.ca.
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Mortgage Professionals Canada