CaDCR Staff writer
The federal government’s decision to support first-time buyers by introducing 30-year amortization periods for insured mortgages on new construction is very welcome news to the Canadian Home Builders’ Association (CHBA) and its members, who have been calling for this very measure.
“CHBA has been calling for 30-year amortization periods for insured mortgages for new construction because of the urgent need for much more new housing supply. This is a game-changer for those who have been struggling with housing affordability and growing inequities in mortgage access,” CHBA CEO Kevin Lee said in a statement.
“This measure will also go a long way to enable our sector to respond to the government’s goal of getting 5.8 million new homes built over the next decade. This measure is needed now, to help turn the market around, and will be needed for many years to come if we are to work towards doubling housing starts. The problem has been simple: if buyers cannot get a mortgage to buy a home, then builders cannot build.”
Canadians still deeply want to own their own homes, and enabling first-time buyers of new homes to enter the market is critical for getting more supply built. This measure’s focus of on new supply has been designed to help first-time buyers enter the market without impacting prices in the existing housing market. The rental market should also see some relief, as it will enable many Canadians to now leave their rental units and become homeowners.
“Through this announcement, the government has recognized that we need to get first-time homebuyers into the market, and it will both support affordability and get more supply under construction. CHBA looks forward to continued work with the government to help unlock the door to homeownership,” said Lee.
