Mortgage Professionals Canada Welcomes Today's Housing Policy Announcement by Conservative Party Leader Andrew Scheer
TORONTO, Sept. 23, 2019 /CNW/ - For many months, Mortgage Professionals Canada (MPC) has consulted dozens of stakeholders, including several relevant Parliamentary committees and many Members of Parliament. MPC is pleased with the Conservative Party of Canada's announcement on homeownership in Canada released earlier today.
Over the past several months, MPC has been asking for a number of changes to the mortgage macro-prudential rules, but primarily:
- A reduction in the mortgage rule stress tests (commonly described as "B-20"),
- The re-introduction of a mortgage insurance eligible 30 year amortization for first time homebuyers, and;
- A stress test exemption for borrowers who have paid as agreed through their first term and who wish to renew with another lender.
All of these recommendations were made in the interest of supporting access to home ownership for younger, aspiring middle class Canadians, whose long term economic well-being has been disproportionately disadvantaged by more recent policy changes.
Today, Conservative Party of Canada (CPC) Leader Andrew Scheer promised to do the following, if his party forms the next government:
- Fix the mortgage stress test to ensure that first-time homebuyers aren't unnecessarily prevented from accessing mortgages and work with OFSI to remove the stress test from mortgage renewals to give homeowners more options.
- Increase amortization periods on insured mortgages to 30 years for first-time homebuyers to lower monthly payments.
- Launch an inquiry into money laundering in the real estate sector and work with our industry partners to root out corrupt practices that inflate housing prices.
- Make surplus federal real estate available for development to increase the supply of housing.
"We are delighted to see our recommendations included in the Conservative Party of Canada platform," said Paul Taylor, President and CEO of Mortgage Professionals Canada. "I am very encouraged to see the real concerns of our members, and the would-be home owners they serve, have been addressed in such a positive manner. Accessible home ownership is an important issue for all Canadians. Thank you to Andrew Scheer and his team for having heard our concerns and responding so directly."
MPC has confirmed with the CPC that "First time homebuyers is defined in the same way as in the First Time Home Buyers Plan." There are small aspects of the definition which need clarification, but MPC is proud to have helped drive this conversation forward in recent months, and continues to look forward to working with a wide variety of stakeholders as they develop smart, needed policies for existing and aspiring Canadian homeowners.
For further reference, transcribed testimony from May 16, 2019 by MPC President and CEO Paul Taylor and Chair Michael Wolfe to the House of Commons Standing Committee on Finance (FINA) can be found here.
About Mortgage Professionals Canada
Mortgage Professionals Canada (MPC) is the national mortgage industry association representing 11,500 individuals and 1,000 companies, including mortgage brokerages, lenders, insurers and industry service providers. Our members make up the largest and most respected network of mortgage professionals in Canada. MPC represents members' interests to government, regulators, media and consumers. With our members, the association is dedicated to maintaining a high standard of industry ethics, consumer protection and best practices.
The mortgage broker channel originates over 35% of all mortgages in Canada and 55% of mortgages for first-time homebuyers, representing approximately $80 billion dollars in economic activity annually. With our diverse and strong membership, Mortgage Professionals Canada is uniquely positioned to speak to issues impacting all aspects of the mortgage origination process.
SOURCE Mortgage Professionals Canada
Paul Taylor, Mortgage Professionals Canada, 416-644-5465, [email protected]; Rita Rahmati, Impact Public Affairs, 647-289-9774, [email protected]
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