Mortgage industry urges Ottawa to tackle housing affordability, takes aim at homebuyer incentive

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Mortgage industry urges Ottawa to tackle housing affordability, takes aim at homebuyer incentive
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Mortgage Professionals Canada recommendations include letting first\u002Dtime homebuyers get mortgage terms of up to 30 years

The organization, which represents mortgage professionals across Canada, is calling on politicians to implement the Liberal party’s campaign pledge of increasing the insured mortgage cut-off from $1 million to $1.25 million, and tying the metric with inflation to keep up with today’s home prices. It also wants first-time homebuyers to have access to mortgage terms of up to 30 years for insured mortgages.

“To our first point, increasing the mortgage insurance cap to $1.25 million and including it on an ongoing basis was sensible enough to be an election promise made by both the current government and the Opposition last year,” said MPC chair Joe Pinheiro during a news conference, adding that a minimum of 20 per cent, or $200,000 in savings, for a $1-million home is needed.Article content

The organization also criticized the First-Time Home Buyers Incentive program, a shared equity program launched in September 2019 that offers five per cent towards the down payment for a first-time buyer’s purchase of an existing resale home, or 10 per cent for a newly constructed home.

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