NDP wants to reintroduce 30 year amortizations to insured mortgages

NDP Leader Jagmeet Singh announced another step in his plan to take real action to address the housing crisis. When it comes to tackling the housing crisis, NDP Leader Jagmeet Singh and the NDP team are on the side of Canadians with solutions that will make it easier to own a home now.

“For too many Canadians, the dream of owning a home seems further away than ever. First time buyers are struggling to get into the market as they watch prices spiral upward, putting home ownership more and more out of reach,” said Singh. “Trudeau’s Liberals haven’t done anything to make home ownership more accessible for young Canadians. They simply don’t get it. We must take immediate action to put the dream of home ownership within reach for more Canadian families.”

New Democrats led the way in calling for bold action to build more affordable and social housing across the country. Now it’s time to do the same for home ownership for the next generation. Jagmeet Singh is calling on Trudeau’s Liberal government to re-introduce 30-year terms to CMHC insured mortgages on entry level homes for first time home buyers and provide resources to facilitate co-housing, and to ease access to financing by offering CMHC-backed co-ownership mortgages. These measures are in addition to what the NDP has previously called for in the next budget to bring immediate relief to the families that need it, and address the housing crisis in the long term.

Mortgage Professionals Canada supports a simple increase from the current 25 year maximum to 30 years because it helps aspiring homeowners in three key ways:

  1. It helps renters become owners, helping many younger Canadians nationwide move into housing more suitable for young families;
  2. It gives them flexibility to get the same size mortgage but with lower payments, allowing them greater capacity for saving, spending, and investing;
  3. 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 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.

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