CMHC backed 30 year term mortgages
Steve Randall
Canadian Real Estate Wealth
The leader of the NDP has set out proposals to make homeownership more achievable for young Canadians, including the reintroduction of 20-year amortizations for insured mortgages.
Jagmeet Singh also said this week that his party plans to build 500,000 affordable homes over the next decade.
Mortgage Professionals Canada has responded to the leader’s proposal to reintroduce 30-year CMHC-backed loans saying that it’s top recommendation to policymakers is “that qualified first-time homebuyers be provided access to mortgage amortization periods of up to 30 years for insured mortgages.”
In a statement, MPC president and CEO Paul Taylor said:
“We support a simple increase from the current 25 year maximum to 30 years because it helps aspiring homeowners in three key ways:
- It helps renters become owners, helping many younger Canadians nationwide move into housing more suitable for young families;
- It gives them flexibility to get the same size mortgage but with lower payments, allowing them greater capacity for saving, spending, and investing;
- It specifically targets assistance to first time buyers, allowing them to better compete financially against investor purchasers.
Aspiring Millennial and Generation Y homebuyers have been telling policymakers and our members that they are frustrated, and that they want Housing Affordability brought front and center.
We have some technical concerns about the structure of Mr. Singh’s pledge today, but we are very encouraged to see 30-year amortizations as a component of the NDP support plan for would-be first-time buyers.”
The issue of Housing Affordability is important, and it is multi-partisan. We are continuing our discussions with all parties and look forward to the March 19 Federal Budget and any support measures the sitting government will also recognize to help aspiring young middle-class Canadians.
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