MORTGAGE REFORM IS NEEDED TO ENABLE MORE HOUSING SUPPLY

Today the federal government announced important changes to mortgage rules that will enable more well qualified buyers to access mortgages and become homeowners, which will drive more housing construction and supply. These changes are reflective of recommendations that industry leaders have been calling for, as without qualified buyers, the industry can’t build the homes Canada needs.

Since the sub-prime crisis of 2008-2009, ever-tightening mortgage rules in Canada have made attaining the dream of homeownership increasingly difficult, despite the fact that Canada’s financial system is one of the best in the world and could safely accommodate adjustments to insured mortgages. Today’s announcement to allow 30-year amortizations for first-time buyers and for newly constructed homes, as well as a higher limit on insured mortgages to reflect today’s house prices, is exactly what the market needs to help to correct the falling trajectory of housing starts and build more homes.