Millennials are facing unique and daunting challenges as they make important life decisions
around housing. Young Canadians hoping to settle down and buy their first home, like
their parents did a generation ago, are facing a tough housing market. House prices have
increased significantly in recent years, especially in and around big urban centers like Vancouver
and Toronto. Saving up enough cash to cover the downpayment is getting harder and harder,
and more and more Canadians are turning to their parents for help.
On top of that, we see many markets where there just isn’t enough housing supply to
meet demand. These issues, affordability and supply, have spillover effects, making rents
more expensive, and increasing the demand for community and subsidized housing. We listened
to Canadians over these past few years talk about the fears that they, or their children,
will never be able to own their own home, and because we believe in investing in our
people, and our communities, we decided to act. Our government is taking real concrete
steps to make sure home ownership remains an accessible dream, not just a privilege
afforded to the richest few. In 2017, we launched the very first national
housing strategy. This strategy, which provides $40 billion over 10 years, is aimed at building
and repairing more housing from coast to coast because all Canadians deserve a safe and affordable
place where they feel at home. And as we announced yesterday in the 2019 budget, we are taking
important measures to make housing more affordable in Canada, primarily for those wanting to
buy their first home. First, we increased the maximum withdrawal
amount under the home buyers plan, from $25,000 to $35,000. And, second, we introduced a new
incentive program to help first time home buyers get into the market. The first-time
home buyer incentive is a brand-new innovative way to help Canadians with household income
under $120,000 to buy their first home. Under the new program, eligible first-time home
buyers could share a part of the cost of buying a home with the Canadian Mortgage and Housing
Corporation, CMHC. For eligible buyers, the program would reduce the size of their insured
mortgage and lower their monthly mortgage payments. Through the new incentive, CMHC
would provide 5% of the value of a home for a first-time home buyer through a shared investment,
and to encourage the construction of new housing supply, the incentive would increase to 10%
for a new build. The buyer would repay the incentive at a later date, such as when they
sell the house. Sharing the purchase cost of a home with CMHC
will reduce monthly mortgage payments for new owners. In many cases, people will have
hundreds of dollars more each month for swimming classes for children, language classes, since
it is the International Day of La Francophonie,
and of course, their retirement. Ultimately, the new first-time home buyer incentive is
a fair and responsible approach to help more young Canadians access the housing market.
Many Canadians dream of having their own home. Although the purchase of a house is not for
everyone, those who want to become homeowners are facing new obstacles, obstacles that their
parents never had to contend with. Housing affordability and supply represent considerable
challenges, but our government is proposing real concrete steps to overcome them. From
the national housing strategy to the first-time home buyer incentive, we are starting a new
chapter, and we are helping families to achieve their dreams of buying a home.
Thank you very much for being with us today.