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Mortgage Professionals Canada applauds federal measures to improve homeownership access

Apr 16, 2024, 18:53 PM by Mortgage Professionals Canada

April 16, 2024


Mortgage Professionals Canada applauds federal measures to improve homeownership access


Ottawa, ON — Today, Minister of Finance Chrystia Freeland unveiled the Federal Budget for 2024. Mortgage Professionals of Canada (MPC), the national association representing the interests of over 15,000 mortgage brokers, lenders, insurers, and related professions, applauds the federal government’s sustained efforts and massive policy improvements on modernizing the mortgage charter and making things better for Canadians.

Lauren van den Berg, President and CEO of Mortgage Professionals Canada today expressed: "MPC wishes to thank the government for its commitment to making homeownership more attainable for first-time buyers, for its proactive measures to increase housing supply, and its commitment to support the fight against fraud in the housing sector. These actions are fundamental to addressing the pressing needs of the Canadian market and reflect our crucial advocacy efforts."

In addition to the recently announced incentives around increased affordability and accessibility of supply, we welcome the Budget’s exemption of insured mortgage holders from requalifying under the insured minimum qualifying rate when switching lenders at mortgage renewal, and we will continue to advocate for this measure to apply to all mortgages.

The removal of the blanket stress test for renewals is excellent news and a direct result of MPC’s advocacy efforts.

We appreciate the positive steps taken by the federal government, signalling its commitment to ensuring that these initiatives effectively improve housing affordability for middle-class families.

One of the critical elements of the Budget is the extension of the amortization period from 25 to 30 years for insured mortgages on newly built homes for first-time buyers. This is a clear win for MPC, and a true step forward. This will help lower monthly payments and help families and young professionals in making their dream of homeownership more accessible and sustainable. We look forward to working with the government to level the playing field for all homebuyers and securing the extension of the amortization for all Canadians.

MPC further applauds the government's initiative to partner with the mortgage industry to explore income verification processes through the Canada Revenue Agency (CRA) to combat mortgage fraud. A long-standing policy solution from MPC – and one the association is happy to have helped move the needle on – this critical step will empower mortgage professionals with the tools to help the government crack down on mortgage fraud.

Putting the emphasis on these advancements, van den Berg underlined the need to build on the current momentum: "These initiatives represent significant steps forward as we continue to champion the dream of homeownership for all Canadians. We’re pleased to see the federal government take direct steps to address the housing crisis and we look forward to ongoing collaboration and engagement as we move forward.”

One recommendation still revolves around the creation of a permanent housing roundtable; a measure that would bring together all orders of government, industry, and civil society to develop harmonized solutions to the housing supply and affordability crisis. Increasing the value of mortgage insurable homes from $1 million to $1.25 million is also a topic that will require further work. We will also have to see how the increase on taxes on capital gains impacts the market.

MPC remains dedicated to advocating for the mortgage industry's best interests and collaborating with the federal government to ensure continued efforts in creating a more accessible housing market for all Canadians.

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About Mortgage Professionals of Canada (MPC):

Mortgage Professionals of Canada is the leading national association representing the mortgage industry in Canada. Comprising over 15,000 members, MPC advocates on behalf of its members to foster a fair and efficient mortgage marketplace. The association provides education, accreditation, and advocacy to enhance the professionalism and ethical standards of the industry, aiming to ensure that Canadian homeownership is both a sustainable and achievable goal. MPC is committed to working collaboratively with stakeholders and policymakers to support the ongoing interests of Canadian homeowners and those seeking mortgages.

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