Committee outlines possible steps to address current crisis
The federal government should focus on implementing measures targeted at the mortgage and construction sectors to address the ongoing housing affordability crisis, according to the just released report of the Senate Committee on Banking, Commerce and the Economy.
The report said that the Liberal administration should consider strengthening protections for mortgage borrowers, improving builders’ productivity, and boosting the supply of skilled professionals in the construction sector.
Federal-level interventions would be necessary as the rate of housing construction will need to grow more than three-fold to meet the Canada Mortgage and Housing Corporation’s (CMHC’s) affordability target by 2030, the report said.
“Canada is failing to address the housing crisis,” said committee chair Senator Pamela Wallin. “We need to accelerate the supply of homes across the country – immediately. Canadians are counting on the federal government to make that happen.”
Other mechanisms that the federal government could explore include encouraging more housing solutions via the banking sector along with fair relief measures to ensure safe borrowing, said committee deputy chair Senator Tony Loffreda.
The committee said that it is incumbent upon regulators such as the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada to ensure that more robust consumer protections are in place.
The Canadian federal government plans to allocate approximately $20.8 billion over six years to incentivize the development of housing supply and address affordability challenges.
— Canadian Mortgage Professional Magazine (@CMPmagazine) November 22, 2023
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Crucial to the success of these measures will be an environment that cultivates housing sector innovation, as this would help with any solutions that an influx of skilled workers will end up devising.
“To that end, the government should establish a permanent roundtable of stakeholder groups, including provincial representatives, to slash regulatory and administrative barriers,” said Senator Diane Bellemare, member of the Subcommittee on Agenda and Procedure.
“The federal government must work with provincial and municipal governments to address the barriers that are negatively impacting the availability of housing across the country,” added Senator Elizabeth Marshall, member of the Subcommittee on Agenda and Procedure.
