February 26th, 2024

Home builders group pushing for 30-year mortgages to boost construction in Canada

By The Canadian Press on February 8, 2024.

The Canadian Home Builders' Association wants the federal government to extend the amortization period for insured mortgages to 30 years for new construction, arguing it would help with affordability and spur more homebuilding. New homes are constructed in Ottawa on Monday, Aug. 14, 2023. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA – The group that represents residential builders in Canada wants Ottawa to offer a 30-year amortization period for insured mortgages on new homes.

The Canadian Home Builders’ Association says extending the period an additional five years would help with affordability and spur more construction.

Kevin Lee, the group’s CEO, says it would bring more first-time homebuyers into the market, in turn encouraging developers to build more homes.

The association is also recommending setting up an investment tax credit to help the industry become more productive.

Housing expert Mike Moffatt says he likes that idea. But he says offering a longer mortgage risks boosting demand without addressing the core issues behind the shortage.

The Canadian Mortgage and Housing Corp. estimates the country needs to build 5.8 million homes by 2030 to restore housing affordability.

This report by The Canadian Press was first published Feb. 8, 2024.

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