Statement from Mortgage Professionals Canada on today's announcement by Jagmeet Singh, leader of the New Democratic Party, to reintroduce 30-year amortizations to insured mortgages
20 Feb, 2019, 18:27 ET
OTTAWA, Feb. 20, 2019 /CNW/ - Mortgage Professionals Canada is focused on helping grow the middle class by helping those working hard to join it. New mortgage stress tests have exacerbated the current rising interest rate challenges and together have stopped the dreams of thousands of aspiring first time homebuyers. One of our top recommendations to policymakers is, "that qualified first-time homebuyers be provided access to mortgage amortization periods of up to 30 years for insured mortgages."
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.
President and CEO
Mortgage Professionals Canada
Mortgage Professionals Canada is the national mortgage industry association representing 11,000 individuals and 1,000 companies, including mortgage brokerages, lenders, insurers and industry service providers. Its members make up the largest and most respected network of mortgage professionals in the country whose interests are represented to government, regulators, media and consumers. Together with its 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 annual economic activity. With this 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
For further information: Paul Taylor, Mortgage Professionals Canada, O: 416-644-5465; C: 905-334-1165, [email protected]; Christian von Donat, Impact Public Affairs, 613-408-0498, [email protected]
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