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Results: 31 - 45 of 79
View Ziad Aboultaif Profile
CPC (AB)
View Ziad Aboultaif Profile
2021-06-08 15:43 [p.8118]
Madam Speaker, before I begin discussing the motion at hand, I would like to give my condolences to the family that was attacked in London on Sunday evening. Four people were attacked and killed by an individual who was only motivated by hate for this innocent family, solely due to their Islamic faith. This kind of violence does not belong in the world, let alone in Canada.
Targeting men, women and children solely due to their beliefs is an act of hatred, pure and simple. It is something that cannot be tolerated in a free and just society, and my heart goes out to the family. We owe them, as a society, to work together to find a cure once and for all.
To begin with the issue of the day, I can say with confidence that one of the biggest challenges Canadians face in their lives right now is the cost of housing. Frankly, when I look at some of the real estate prices in some of Canada's largest cities, I struggle to think of how I would pay for one of those homes, and I am not talking about mansions here. Even starter homes are starting to get ridiculously expensive in this country. I took a look at some of Vancouver's real estate listings, and my mind was blown.
I think the cheapest house I found was two bedrooms and a little over 900 square feet for just under $500,000. I took a look at some of the listings in Toronto, and it was even worse. I could not find a single house available for under $500,000, just small condos or apartments.
One of the most ridiculous listings was a 500-square-foot bachelor pad for $500,000. That is about the size of my office back in my constituency, and I can barely fit my desk in there. I have no idea how someone would fit their entire life into something that size.
As I mentioned, the cost of housing is one of the biggest problems that Canadians are facing in their lives right now. I know that my colleagues the hon. member for Regina—Qu'Appelle and the hon. member for Mission—Matsqui—Fraser Canyon wrote an update published in the Toronto Sun last week that discussed a lot of the causes of the, frankly, ridiculous cost of housing in this country. Obviously, I think it raised several good points, otherwise I would not be discussing them personally, and I think many Canadians would agree with this once they take a minute or two to think it over. The lack of supply of housing in Canada is one of their most compelling arguments.
I did the math, and from 2009 to 2019, the population of our country grew by 10.5%. That is about four million new Canadians. Obviously, there will be plenty of families in there, so I am not saying that we need four million new homes, but the lack of supply of housing is pretty well documented. This lack of housing supply has had some pretty clear consequences for Canadians.
The price of housing has boomed in nearly every major city in the country, with Edmonton and Calgary proving to be the only exceptions. Toronto, for instance, has seen the price of housing triple over the past 15 years. I think that goes a long way to explaining the 500-square-foot room for $500,000. Ultimately, I think that represents a national tragedy. The cost of housing in many of Canada's cities is, in many ways, an exclusionary barrier to families that are looking to fulfill their dreams of owning their own homes.
I am sure that this is similar for many Canadians as well as many of our colleagues, but I grew up with this dream. It is a pretty simple one, but simplicity carries universality. It is a classic dream to grow up, find a job, fall in love, start a family and buy one's own home to live in with that family.
I am fortunate that I have been able to fulfill that dream. I am sure it is similar for some of my colleagues, or maybe most of my colleagues, but it is not a similar story for a lot of Canadians. There are thousands of families across the country that are blocked from fulfilling that dream because of the cost of housing.
Maybe all people can afford now is to rent an apartment, or they cannot afford a big enough house so their children can live comfortably. Maybe they are forced to live in a bad neighbourhood where it is not safe for their kids to play outside because it is all they can afford.
Just as important, this is not just a barrier for families. It is a barrier for students who are moving away from home for the first time. It is a barrier for recent graduates looking for a new home as they enter the job market. It is a barrier for seniors who are looking to downsize after their retirement. It is a barrier to every Canadian from coast to coast. It is a slap in the face to all of them, quite frankly, especially with the ongoing pandemic, meaning that Canadians have been struggling while real estate prices keep chugging up and up.
The prohibitive cost of housing in many of Canada's cities is, frankly, a barrier that people are struggling to cross. It is not like a chain-link fence that we find at schoolyards. It is much closer to the walls of Jericho, tall, imposing and not crossable, but just like biblical walls, these walls can be brought down.
However, we cannot do it through the failed infrastructure and housing support programs of the government. We need to increase the supply of housing in our major cities. It is logical that our population cannot continue to grow while our housing supply barely adds new homes for Canadians. It is simple, but it is more than that.
While this is unique in every city across the country, there is a substantial amount of red tape and municipal regulations that prevent the construction of new housing. While we obviously cannot legislate municipal affairs, the federal government can work with the provincial governments and municipalities to improve the situation. We can encourage cities to cut red tape and make building new homes easier to alleviate the supply issues in many of our larger cities.
The federal government already issues gas tax rebates, carbon tax rebates and more to municipal governments. Why not other transfers such as from the thus far useless infrastructure bank or any one of the other dozens of programs? The municipal rules and regulations are a massive driver of the increase in housing prices and, to top it off, are all the government's failed programs.
Back in the 1980s, there was a tax rebate program for building new homes called the multiple unit residential building program. In today's dollars, it cost $9,000 per home built in foregone government revenue. I would say that is pretty good. The Liberal government's equivalent, the rapid housing initiative, costs 23 times that per home. That is with the $9,000 adjusted for inflation.
Clearly the government's current approach is not working. Clearly it is not helping Canadians afford homes. That is why we need a different approach. It is clear that the government needs to stop the endless, poorly thought-out infrastructure program. It is clear that the made-in-Ottawa programs are not working.
Despite all of the government programs designed to make affording down payments easier, and all the various tax credits related to home ownership, the walls remain up. It is time to stop marching around the city. It is time to blow our horns and tackle the issues of lack of supply and over-regulation of housing construction. It will bring down the wall of prohibitive housing costs in Canada's major cities.
This is what we need to do to make housing more affordable for Canada and Canadians. This is what we need to do to make sure that Canadians can fulfill their dream of home ownership. That is what my Conservative colleagues and I support, so Canadians right now or 50 years from now can fulfill their dreams.
View Francesco Sorbara Profile
Lib. (ON)
Madam Speaker, I will be splitting my time with the distinguished member for Kingston and the Islands.
Before I begin my speech, I would like to pay my respects to the four Canadians who were taken from their family and friends. This absolutely breaks my heart. I know all Canadians have their thoughts with this family and with the nine-year-old boy for whom we all wish a full recovery. May light overcome such darkness, and, yes, we must root out all forms of discrimination, including Islamophobia. It needs to be called out. It needs to be condemned. At this time, we all stand shoulder to shoulder with Muslim Canadians across this country.
I am pleased to contribute to this very important debate that we are having, as this issue impacts all Canadians from coast to coast. I would like to thank the hon. member for raising the issue of housing. It is a frustrating period for many Canadians who are trying to purchase their first home. High housing costs, especially in urban centres, continue to put financial pressure on many middle-class and low-income Canadians. COVID-19 has exacerbated existing housing affordability and homelessness issues and the public health risks of substandard and crowded living quarters.
This government knows that a long-term plan for a faster-growing Canadian economy must include housing that is affordable for Canadians, especially young families. Stable housing is critical for communities and for a strong middle class. Affordable housing is also essential for economic fairness and growth.
Investments to make housing more affordable for the most vulnerable, coupled with measures to limit foreign speculation in the housing market, will help ensure that our economic recovery is an inclusive one that helps more people join the middle class.
That is why the government has a plan as part of budget 2021 to invest $2.5 billion and reallocate $1.3 billion in existing funding to speed up the construction, repair or support of 35,000 affordable housing units.
Since 2015, this government has made historic investments to increase supply and make housing more affordable. For example, under Canada's first national housing strategy, we are on track to deliver over $70 billion in investments by 2027-28 that will support the construction of up to 160,000 affordable homes and increase Canada's housing supply.
We also introduced the rapid housing initiative to address urgent housing needs for vulnerable Canadians in all regions of Canada. The $1-billion program will be expanded with an additional $1.5-billion allocation from budget 2021.
At least 25% of that money will go towards women-focused housing projects. Overall, this new funding will add a minimum of 4,500 new affordable units to Canada's housing supply, building on the 4,700 units already funded.
The funding is available to municipalities, provinces and territories, indigenous governing bodies and organizations, and non-profit organizations. Funding will be used for the construction of modular housing as well as for the acquisition of land and for converting existing buildings into affordable housing units. Most recently, the federal government announced it is aligning the minimum qualifying rate for insured mortgages with that for uninsured mortgages, subject to review and periodic adjustment, that being the greater of the borrower's mortgage contract rate plus 2%, or 5.25%. This will apply to insured mortgages approved as of June 1, 2021.
The government also recently expanded access to the first-time home buyer incentive to make sure more middle-class Canadians in Toronto, Vancouver and Victoria and cities of the like can benefit from this support. The program reduces a first-time home buyer's mortgage payments to make buying a home more affordable.
Another factor contributing to unaffordable housing prices for many Canadians in some of our biggest cities is speculative demand from foreign non-resident investors. That is why on January 1, 2022, the government will introduce Canada's first national tax on vacant and under-used residential property owned by non-resident non-Canadians. Houses should not be a passive investment vehicle for offshore money. They should be homes for Canadian families, many of whom reside in my riding of Vaughan—Woodbridge.
The tax will require owners other than Canadian citizens or permanent residents of Canada to file a declaration as to the current use of the property, with significant penalties for failure to file. Revenues generated through this tax will help support the government's significant investments in making housing more affordable for all Canadians.
I would like to turn back to some of the other housing measures contained in the budget. Budget 2021 proposes $600 million over seven years to renew and expand the affordable housing innovation fund. To date, this program has committed funding to support the creation of over 17,600 units, including more than 16,300 affordable housing units and units for persons with accessibility challenges. This new funding would support the creation of up to 12,700 more units.
This is an investment of $315.4 million over seven years through the Canada housing benefit to increase direct financial assistance for low-income women and children fleeing violence to help with their rent payments.
The budget also proposes $118.2 million over seven years through the federal community housing initiative, to support community housing providers that deliver long-term housing to many of our most vulnerable.
Of the $1.3 billion of previously announced funding that has been reallocated, $750 million under the national housing co-investment fund will accelerate the creation of 3,400 units and the repair of 13,700 units. Some $250 million under this program will support the construction, repair and operating costs of an estimated 560 units of transitional housing and shelter spaces for women and children fleeing violence.
We are providing $300 million through the rental construction financing initiative, which will be allocated to support the conversion of vacant commercial property into housing. This funding will target the conversion of excess commercial property space into 800 units of market-based rental housing.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-08 16:28 [p.8124]
Madam Speaker, I will be splitting my time with the hon. member for South Surrey—White Rock.
We have a decision to make as to whether we want to be a property-owning democracy or a landed aristocracy. That might seem stark, and it is, but it is also true. It is 100% true if we look at the facts.
According to CMHC, for a house to be affordable it should not consume more than 30% of a family's income. Currently, in Canada, the average house would consume 50% of the average family's household income. In other words, the average house is two-thirds more expensive than the average family can presently afford. That is just the average. Across Canada, there are more extreme examples.
For example, in Toronto it takes 68% of the average family's income to own the average house. In Vancouver it is 79%, and that is 79% of pre-tax income, which means that it is mathematically impossible, not just difficult, for the average Vancouverite to own the average home. Why is that? It is because people do not have 79% of their pre-tax income left when the government is done with them. Even if they spent 100% of their post-tax income, it would not be enough. Even if they ate no food, bought no clothes and had zero recreation they would not have enough money, as average Vancouverites, to own the average home.
What is causing that? Why is it that Vancouver is the second-most expensive housing market in the world when we compare average income with average house price? Toronto is number five. Both of them are ahead of Manhattan, London, England, and San Francisco: places with more people, more money and much less land. Is it because we do not have enough land in Canada? We are the 10th-least population dense country in the world. There are more places where there is nobody than there are places where there is anybody in Canada. If we spread our population out equally across the land, there would be only one person standing on every three CFL-sized football fields. That is how much land we have in this country, yet somehow we have a housing shortage. Clearly, it is not because of a lack of land.
Could it be there is a booming economy that is driving up housing prices? Of course not. The GDP went down $120 billion last year and has not recovered.
What else is it? Is it COVID? COVID should have reduced housing prices. When CMHC testified at the finance committee at the beginning of COVID, it said that the pandemic would reduce housing prices by 14%. The Bank of Canada said it would be a disinflationary event, and it should have been. People were moving farther out into the country where per-square-foot costs are actually lower. Furthermore, their jobs were threatened so they would be less inclined to get approved for mortgages, and their earned wages were down, which means they would have less money with which to pay, which should have driven down housing prices. Instead, housing prices went up. They started going down in April 2020 before rocketing up 40% since that time.
What is the real cause? The answer is that the government is restricting supply and ballooning demand.
Let us start with supply. Here in Canada we have one of the slowest processes on Earth to get from buying land to building on it. In some jurisdictions this takes seven years. In Canada in general, it takes forever to get anything approved. In fact, out of 37 OECD nations, we are ranked number 36 for the time it takes to get a building permit for a warehouse, and it is not much different for housing.
Toronto's per-unit-of-housing cost of government is 50% higher than the average in United States municipalities. The charges alone consume almost a quarter of a million dollars in costs for every new unit of housing built in Toronto. The global cost of government for a new unit of housing in Vancouver is $600,000. That is just to pay the cost of government.
This, of course, keeps aristocratic, leafy neighbourhoods gentrified and keeps other people out. It makes the rich richer because they get to have an exclusive domain over these neighbourhoods, where no one else can build and get in. That is very good if someone already has a house as it increases their wealth, but those who are not yet in are shut out. It is as if there was a wall built around these neighbourhoods, where only the rich are allowed inside the wall and everyone else has to try to pay the gatekeeper to get in, but of course most cannot afford to do so. Therefore, the government restricts supply.
What does the government do with demand? It has pumped $356 billion of brand new, created currency into the financial system. The Bank of Canada began printing money in March of 2020, and from February of that year to February of this year the money supply grew by $354 billion. What was the size of the federal deficit? It was $354 billion, exactly the same number, so the printed money was to pay for the government's overspending.
What did that do to inflation? As we know, inflation is everywhere and always a monetary phenomenon. As the supply of money goes up, prices rise with it, and this started with housing prices. In fact, from Q1 2020 to Q1 2021, the money that went into the financial system and the mortgage system increased new mortgage borrowing by 41%. Does anyone know what the price increase was for housing between April of last year and April of this year? It was 42%. The newly created money jacked up mortgage borrowing by 41% and housing prices by 42%. Is it coincidence? Of course not. These are the simple laws of supply and demand, and they are working very well for the very rich.
For someone who owns a $10-million mansion, the increase in that person's home value, depending on which month to month is chosen, is somewhere between $3 million and $4 million. That is money that individual gets for doing absolutely nothing. For a working class person with the dream of buying a home, that dream just got more remote and more unlikely. Furthermore, landlords are about to raise people's rents because the cost of property has risen. He or she will use this, perhaps in some cases unavoidably so, to raise the rents of the people who live there. The wages of working-class people measured in the amount of real estate they can buy are down in value by 30% to 40% in just one year. Meanwhile, the wealth of the super rich is way up. Printing money raises the prices of the things that the poor must buy and that the rich already own. It is a colossal wealth transfer from the working wage earner to the wealthy asset owner.
What do we do? Sometimes the answers are actually simple: not easy, but simple. We should open up the country to construction so we build more homes and increase supply, and we should stop printing money in order to avoid pumping helium into prices. In other words, we should start building and stop printing. It is more about what the government should stop doing than what it should start doing. It should allow people to keep the value of their dollar, to buy things that are of worth with that dollar and build things that will make their lives better. That is how we restore our property-owning democracy. It is how we go back from today's aristocracy to what Canada should be, which is a meritocracy.
View Kerry-Lynne Findlay Profile
CPC (BC)
Madam Speaker, the reality in my riding of South Surrey—White Rock is that the dream of working hard, saving up, taking out a mortgage and buying a home to raise a family has become completely unrealistic. It has gone from challenging, but hopeful, to impossible.
A constituent of mine recently sent me a listing in White Rock. It had two bedrooms, two bathrooms and was 1,600 square feet. It was a modest place to raise a family, built in the 1960s. It sold in December 2020 for just over $900,000. Now it is listed for more than $1.25 million. If it sells at asking, and most right now are selling over asking, that is a 23% increase in a matter of months.
How about the South Surrey home that was sold in February for $1 million and then listed again in April 2021 for $1.35 million? No, this is not an issue that arose overnight. I recently saw a small home listed in White Rock for $750,000. It sold in 2015 for less than half that. Housing prices should not double in a six-year period.
The average dwelling in my riding now costs about $900,000. In the Fraser Valley, average prices have risen 20% year over year, according to the Canadian Real Estate Association. What are normal Canadians, who earn Canadian incomes and pay Canadian tax rates, to do? For first-time buyers, the dream of home ownership has become a nightmare.
The Liberals' latest answer is to increase the qualifying interest rate across Canada for insured mortgages. Now it will be even harder for Canadian families to qualify. According to James Laird, president of CanWise Financial and co-founder of Ratehub.ca, this will decrease the value of the mortgage a family could afford by roughly 5%. Then we add on the B.C. property purchase tax of 2% on the first $100,000, and 1% on every $100,000 after that. That money goes into the provincial general revenues and is simply lost to the buyer.
Will this increase in the qualifying rate for mortgages cool a red-hot housing market? We see no sign of that. Does it make first-time home ownership more feasible? Absolutely not. It is designed to make it harder to get a mortgage. What it does do, by diminishing buying power, is chill new developments. Developers are the first to realize they might not be able to sell as many units under the new mortgage rules. The rising cost of lumber does not help either.
What we really need to do is increase supply. It is economics 101. Price is largely determined by two things: supply and demand. Of all G7 nations, despite our vast geography and comparatively low population, Canada has the fewest housing units per capita. One way to increase supply is to slow the rampant speculative foreign buying that is distorting our housing supply and squeezing Canadian families right out of the market.
Data for 2019 from the Canadian housing statistics program showed more than 6% of properties in B.C. were owned, at least in part, by a non-resident of Canada. That number is even higher in Vancouver, rising to 11.6% of condominiums there. At first, the government was, and has been, dismissive of this issue, calling those who raised it xenophobic. B.C. workers simply are not able to live in Vancouver. It is seen by many now as a vacation destination.
The parliamentary secretary for housing has said that Canada has become “a very safe market for foreign investment”, adding, “but...not a great market for Canadians looking for choices around housing”.
The latest Liberal budget, the first in over two years, promises to address foreign buying through a consultation on a tax that would apply to foreign buyers. The Surrey family of four forced into an endless cycle of renting because of a skyrocketing real estate market do not want consultation. They want affordable housing. They want to join the middle class. How many times have we heard this Prime Minister's phrase, “the middle class and those wanting to join it”? Seriously, we need a little less talk and a little more action, please.
How else can the government increase supply for prospective Canadian homeowners? It is through policies that encourage building more homes. The Liberal government needs to incentivize home construction and slash through the endless red tape. We need to make it easier to get shovels in the ground, and build. The complex web of bureaucracy that must be navigated to build in this country is extremely costly and time consuming.
The C.D. Howe Institute estimates that red tape and regulations add more than $600,000 on average to the cost of a new home in Vancouver. This is staggering. Sure, much of this is municipal and provincial, but we, in this federal legislature, have a role to play.
A highlight of my parliamentary career was being awarded the Golden Scissors Award from the Canadian Federation of Independent Business in 2015, an award for slicing through red tape. The government needs to get its scissors out to start clipping away, and it needs to challenge its regional counterparts to do the same.
Enhancing transit is another key part of the equation. Better, faster transit that reaches further beyond existing boundaries would create a whole new world of possibility for residential real estate development, allowing more commuters to live in areas beyond the downtown cores.
In the Lower Mainland, we need SkyTrain expansions to Langley and South Surrey. We have been waiting far too long for the replacement of the George Massey tunnel, a key artery along Highway 99 that serves commuters from White Rock, Surrey, Delta and more. There were 85,000 commuters a day in 2019. With only four total lanes of traffic, that means constant congestion.
Plans for an expansion were first announced 15 years ago. It is past time to allocate the funds and work with local governments to get these projects done. Better transit infrastructure encourages growth, development and home ownership. Let us unlock this new supply.
The Liberals’ infrastructure plan simply is not working. Their Canada Infrastructure Bank, which was established to disburse $35 billion to infrastructure projects over 11 years, has completed a grand total of zero projects in four years. The independent Parliamentary Budget Officer recently said that the Infrastructure Bank is likely to fall short of its mandate, predicting only $15.9 billion of the $35 billion will be spent by 2028.
Speaking of over-promising and underperforming, the Liberals’ first-time home buyer incentive is also failing. The shared equity mortgage program offered first-time buyers 5% on existing homes and up to 10% on new constructions, resulting in lower monthly mortgage payments, but with the catch the government owns that 5% to 10% of the home, to be repaid to the government after 25 years or when the property is sold.
Let us say a family in White Rock decides to purchase that two-bed, two-bath I mentioned earlier at the $1.25-million price tag. Using this 5% incentive would effectively be a loan of $62,500. Wait a minute, I was carried away with the promise of this program for a moment. This family actually could not qualify for this program at all because the limits on the program are such that it is not available. In other words, it is completely unworkable in my riding all together. Despite the fact that such a program could result in usurious repayment rates, it is irrelevant in my riding anyway.
Canadians were told the shared equity mortgage program would help 20,000 Canadians buy a home in the first six months. Instead, it has served fewer than 6,000 over seven months. Again, the Liberals over-promised and under-delivered. Two years in, and there is less than one-tenth of the Liberals’ promised uptake.
Canadians are not using the program because it is a bad deal. Home ownership is critical to ensuring lasting prosperity and financial stability of the middle class. Conservatives know this. Let us address speculative foreign ownership, cut through the bureaucracy, encourage new builds, increase supply and make the dream of home ownership a reality.
I listened to the Liberals all day during this debate brag about spending $27 billion on housing, so why is the supply of new builds, rentals and upgrades still a crisis? I guess they have not actually been in charge for the last five and a half years. They talk more about former prime minister Harper than Conservatives do, and today, they even reached back 30 years to former prime minister Mulroney.
We are here in 2021 to address 2021 and future Canadian issues, not to gaze back into history. This is why my colleagues and I have put forth this motion today. We are tired of the inaction, the waste, the talking points and the rapid decline of affordable housing in this country, particularly in ridings like mine.
Why not put all that profligate spending into something Canadians actually care about, such as affordable rentals, home ownership and infrastructure to support both? We need a lot less talk and a lot more action.
View Derek Sloan Profile
Ind. (ON)
Madam Speaker, I made a comment earlier about immigration. I want to be clear that I think Canada has done a great job welcoming people from all over the world, but that does not change the fact that high immigration levels impact housing prices. I see here in front of me a Canada Mortgage and Housing Corporation study that shows that economic growth and immigration strongly influence the demand for housing. I have Statistics Canada information here that shows that, in 2019, 150,000 newcomers came to Toronto, but fewer than 30,000 housing units came online.
Does the member agree that we should take a look at how immigration impacts housing prices in Toronto and our other big cities?
View Darrell Samson Profile
Lib. (NS)
Madam Speaker, it is a twofold approach. We need more immigrants to work and contribute to our great country, and we need to ensure that there is enough housing for all Canadians, including immigrants. That is why our government is investing billions of dollars to support all communities across this great country.
View Brad Redekopp Profile
CPC (SK)
View Brad Redekopp Profile
2021-06-08 17:29 [p.8133]
Madam Speaker, I will be splitting my time with the member for Port Moody—Coquitlam.
It is my privilege to rise in the House to speak today. Housing is an issue that was important to me before becoming an MP, because in my previous job I owned a small home-building business and we built about 60 homes in the space of 10 years. Today I want to share some of the knowledge I gained over the years of building houses.
The question I want to address is how the federal government impacts the cost of housing. First of all, I want to talk about regulations. Many regulations are provincial and local, but the federal government does have significant impact when it comes to the Canadian building codes. They are set by the National Research Council every few years and then adopted by the provinces.
We always speak about the positive changes that come out of the building code changes. For example, most recently there was lots of talk about insulation, insulated basements and insulated concrete floors, etc. We must remember that everything costs more when we add new features and new things to buildings. There are more materials, more labour and sometimes more costs for testing, such as when we have to test for radon, for example.
We have to be careful when we introduce new rules, new legislation and new building codes because we have to balance the cost of these improvements with the cost that will end up in the cost of the home. If we introduce too much bureaucracy and too much cost, then that affects the consumers and the affordability of houses.
We need simple programs, not complicated bureaucratic ones. A good example of that is in Saskatchewan, with the Saskatchewan home renovation tax credit. Essentially, if people have a project that fits the category, they get the work done, get the receipt, put it on their tax return and get the money back as a tax refund. It is quite simple.
We can contrast that to the Canada greener homes grant recently introduced by the Liberals, which is quite a bit more bureaucratic. For that, people have to actually get an audit done, first of all, to measure the baseline efficiency of their house. Then they get the work done, and then they have a second audit to see if there is an improvement. It is a program with excessive bureaucracy.
I want to contrast that with the CERB program. Of course, that was a program that gave $2,000 a month to people at the beginning of the pandemic. This was a program with almost no rules, no audits and very few checks. It was just money for everyone. Now, it was a pandemic, I understand, but in hindsight I think nearly everybody would agree that it was a little too easy to get money out of that program. If we compare that to the greener homes grant, where there is all this bureaucracy, essentially the government is assuming that people are trying to cheat and trying to get money they do not deserve.
We need to find a balance here, where there are appropriate checks and care given, but it is not too bureaucratic and does not create too many onerous problems. It needs to be simple.
The second thing I want to talk about is monetary policy. This is perhaps the most important. When my wife and I bought our first house in 1989, we paid an interest rate of 13%. To put that in perspective, if a 2% interest rate today is a $1,000 payment, if the interest rate were to change to 13%, that $1,000 payment becomes $2,700. Even if the interest rate only went up to 5%, that $1,000 payment still becomes $1,500 a month.
The government has made a trillion-dollar bet that interest rates are going to stay low forever, but history tells us otherwise. From 1965 to now, the average five-year mortgage rate was approximately 9%. There was a 20-year period in there from 1975 to 1995 when the average rate was about 12%. It is only in the last decade that the average mortgage rate has been below 5%.
Where are interest rates going in the future? Nobody knows for sure. However, the failed policies of the Liberal government are causing significant deficit spending. Deficit spending eventually causes inflation, and inflation will drive house affordability further out of reach for Canadians.
High prices also cause people to opt into high-ratio mortgages. I had an example of a customer who planned to build a house with me with a 5% down payment. I explained to them what the bank did not want to explain, which is that the CMHC charges them a fee for a 5% down payment mortgage, and that fee is 4%. Essentially, it wipes out their down payment completely. Once the customer understood that, they chose to wait and try to save for a larger down payment.
This is where the government can lead. Instead of the government's failed first-time home buyer program, people need a real program. We could increase amortization periods, improve mortgage terms and possibly create a tax incentive to allow people to save for their down payment.
The third area that I want to talk about is rental housing. There has been very little new rental housing built in Saskatoon recently, and in fact in Canada. The simple reason is that developers can make more money by building condos. The government may need to introduce some measures to gently prod the market toward more rental products.
This was done before, around 1980, through the program called the MURB program. This incentivized investors to build rental properties, and it worked great. There were 195,000 units built at a cost of about $2 billion in today's dollars. Let us compare that to the Liberals' national housing strategy. It proposes to build 71,000 units for $26 billion. It would be $26 billion to get 71,000 units, as opposed to $2 billion to get 195,000 units. It seems to me that the program from 40 years ago has a much better ROI, and perhaps the Liberal government should look at that program as it designs its program.
In February we hosted a town hall to discuss housing. What I heard was that affordable housing is key, not just for the obvious things, but for physical and mental health. In Saskatoon at any given time, there are approximately 475 homeless adults. I have received over 210 emails and letters on this issue since becoming an MP. The rapid housing initiative was supposed to address Saskatoon's housing needs, but there was no money in the big city stream for Saskatoon, and in the project stream, applications from Saskatoon were all denied by the government.
I supported three projects in Saskatoon West. I wrote letters and spoke to the parliamentary secretary. The Lighthouse application consisted of an acquisition and upgrading of a motel facility to add residential transitional housing. What was the result? There was no funding. The Saskatoon Tribal Council currently runs the White Buffalo Youth Lodge in my riding, and it has many housing options for indigenous people. It also proposed to buy a hotel and convert it to housing. What did the Liberals do? They denied it. The Salvation Army project in my city was the same story. The Liberal rapid housing initiative failed Saskatoon.
I want to remind the House of the homelessness partnering strategy of the former Conservative government. The HPS of the Harper government earmarked funds for certain regions and then let those regions decide for themselves what specific projects to fund. In Saskatoon, a board of local experts was created to make these investment decisions. They took the decision power away from the politicians and gave it to local people on the ground. They knew exactly where the money needed to be spent. With the rapid housing initiative, those decisions remained in Ottawa, with the politicians. Is it any surprise that Saskatoon, with no hope of a Liberal politician, failed to get any money?
Right now in Saskatoon, rental rates are high, availability is low and the quality is poor. This disproportionately affects single mothers, indigenous people, low-income people and new immigrants. It is especially hard for those living on social assistance, as the allowance for rent is not enough to cover the actual cost of rent.
Conservatives have solutions to Canada's housing crisis, and they are in the text of the motion today. If we put that together with our plan for mental health, we really have something good. I hope the Liberals heed the call. If not, Conservatives will secure our housing when we are elected.
As I close, I could not help but think of immigrants and newcomers as I was putting together these thoughts today. I could not stop thinking about the Muslim family killed in London, Ontario, on Sunday. It takes great bravery to leave one's home, country and family to make a new life in Canada. It takes strong courage to begin living in a country where one has few friends or family, and often one does not speak the language. It is difficult to find a good home to live in, as we have been talking about today. However, someone should not have to worry about their basic safety. That is one of the reasons they chose Canada.
To my good friends Hasan, Ilyas, Afzal, Mohammad, Sadiq, Assad, Sayad, and to all Muslims in Saskatoon and Canada, I am so sorry that one hate-filled man has caused so many to live in fear. He does not represent Canada. I am sorry that they feel afraid on the streets; they should not. To all Canadians, let us work hard to make our streets safe for all ages, all genders, all nationalities and all religions.
View Jenny Kwan Profile
NDP (BC)
View Jenny Kwan Profile
2021-06-08 17:39 [p.8135]
Madam Speaker, Chief Shining Turtle has indicated that there is a great need to have CMHC's section 95 program funding for home construction increased to adjust for the inflation in building costs and materials. For example, the band receives about $148,000 in CMHC subsidies to build a house, but with housing costs running at $400 per square foot, a 1,000-square-foot home would cost over $400,000. The band is not able to assume that kind of financial burden, yet CMHC representatives fail to provide a workable solution. Chief Shining Turtle is calling for a bold strategy, not just tinkering around the edges.
Does the member agree that the federal contributions need to match today's cost of construction in the minimum?
View Brad Redekopp Profile
CPC (SK)
View Brad Redekopp Profile
2021-06-08 17:40 [p.8135]
Madam Speaker, the cost of construction these days is really unfortunate. That is part of why I am talking about the building codes. We have to make sure that what we are implementing for building codes is reasonable given the costs that are associated with them.
Many factors come into play when it comes to costs. We have to have a strong labour force. That is achievable. We need to have a good trade policy so that we have reasonable access to materials that come in from overseas, because the materials that we get provide a large part of the cost of the building.
We also need funds to match the costs. Every new homebuyer faces that issue. They are faced with the same problem. They are faced with a very large amount of money needed to pay for the houses they want. It is a problem across the board.
View Nelly Shin Profile
CPC (BC)
View Nelly Shin Profile
2021-06-08 17:42 [p.8136]
Madam Speaker, housing is a basic need for survival. It is not something we should tamper with lightly. People live in a complex ecosystem of currency and the interdependencies of economics and laws that govern its flow, at least in our part of the world. Outside the offerings of charity and benevolence, currency is required to buy and sell goods and services, and this includes homes.
Homes are where families are raised and provide a means for stability and safety. They are established to foster love and security and the thriving of their lives. A home provides autonomy for individuals and young families to grow their own legacy. The home is an anchor for the dignity and flourishing of those who dwell within. There are different types of homes required to meet the needs of people in different seasons of their life journey, including seniors. In the context of a complex world system, an individual's capacity to meet housing needs is intricately interdependent with the world one lives in and the opportunities facilitated by the governing entities.
In understanding these basic principles, it is incumbent on all tiers of government to work together to ensure that, in the midst of an economic continuum, the basic needs of the people are safeguarded so that necessities such as housing are accessible to all Canadians, regardless of their financial position. However, despite an upset of skyrocketing prices in the housing market, triggered by non-resident foreign buyers and money laundering, the government has done little to protect the priority of middle-class Canadians to access housing they can afford. The government has failed to act meaningfully to help first-time homebuyers and incentivize purpose-built market rental housing to fill the housing gap. It has now been made more difficult with inflation and the rising cost of lumber.
I have been raising the issue of housing shortage since the start of the 43rd Parliament. My first question period intervention was in response to the throne speech, and I raised the issue of affordability and the ineffective mortgage stress test. I only need to listen to the stories of my constituents to know that no matter how much the Liberal government claims to have taken action to solve the housing crisis, there is little fruit to show for its work.
I would like to share the story of Jordan, a constituent who lives with his wife and two young children in Coquitlam. He reached out to my office to tell me that he will ultimately be leaving the city he has called home for over 30 years because of housing prices. The last thing he wants to do is leave, but he says that he has little choice in the matter unless he goes into obscene amounts of debt once his current lease is up. As we know, many Canadians are very close to insolvency, just $200 shy. He is perplexed that while his salary is well above the national average, he cannot live in “what has been a working-class neighbourhood since its inception.” He regrets that “the only way to get into the market at this point is to be lucky enough to have parents who have cashed out at the top and are willing to transfer the necessary wealth to their kids.”
Jordan's is not the only story I have heard about long-time residents with deep roots in the community who have had to leave because they cannot keep up with the hiking housing prices. I have spoken with a constituent of Port Moody who is living with his wife and children at a parent's house, renting a floor that is below market rental value so they can save up for a down payment on their first home. However, given the skyrocketing prices, he is beginning to accept the possibility of moving further out of the city to afford a home, even though his children have begun settling into the neighbourhood and feel like it is their home. This breaks their parents' hearts. It is very sad.
Whenever I speak with young families trying to enter the housing market, I am told they cannot dream about owning a home to raise their children. However, there are common-sense steps the government can take without just talking about them or throwing money around without a meaningful strategy. The motion put forth by my colleague calls on the government to:
(a) examine a temporary freeze on home purchases by non-resident foreign buyers who are squeezing Canadians out of the housing market;
(b) replace the government's failed First-Time Home Buyer Incentive with meaningful action to help first-time homebuyers;
(c) strengthen law enforcement tools to halt money laundering;
(d) implement tax incentives focused on increasing the supply of purpose-built market rental housing units; and
(e) overhaul its housing policy to substantively increase housing supply.
In Coquitlam, the average price of a house is $1.1 million, according to MLS stats. This is an annual increase of 23%. However, regardless of the percentages that fluctuate, at large, the price range for first-time homebuyers is so beyond reach that there is no room for them to jump into the market. It should not be controlled by foreign non-residents.
According to a report from CMHC, “properties that have at least one non-resident owner amount to 6.2% of those in British Columbia, and in Vancouver it is 7.6%. The proportion of non-resident participation is highest for condominium apartments. The proportion of condominiums that had at least one non-resident owner was 10.4% in British Columbia. The largest differential in median assessment values between non-resident and resident-owned homes was in single detached houses in British Columbia, at $236,000, which is 36.7% higher than the median assessment value of resident-owned single detached houses.”
The government needs to put a freeze on home purchases by foreign buyers in order to recalibrate the housing market and make it one that reflects the needs of everyday middle-class Canadians. Middle-class Canadians need hope, as every Canadian needs hope about their future. If they get into the market, their house payments should not have to be so high that they live in debt for the rest of their lives.
As I look at the young people, it really is a prayer. I just wish I had more hope for young people as they graduate from university. They look at what is out there, and it is very daunting. They couch surf in their friends' homes. They live in their families' basements. They do not know how to move forward. It is not very much different for families who have children or for couples, because they are also staying in their homes.
In closing, I hope that I could ask the government to just step aside and with moral courage take these issues seriously, to attack crimes like money laundering, to sit down and really crunch numbers and strategies that work with mortgages, and to set their trajectory on helping middle-class Canadians find the hope to dream about their family and their future with a home where they could flourish under the safety of their own roof.
View Dave Epp Profile
CPC (ON)
View Dave Epp Profile
2021-06-07 15:02 [p.8024]
Mr. Speaker, Canada's Internet costs are among the highest in the world and this is one of the few countries where they continue to rise. On May 27, the CRTC reversed its own decision to reduce the broadband access costs from the large telecoms to the smaller Internet service providers, such as TekSavvy, headquartered in Chatham. Whereas the railway secured Canada's future 136 years ago, Canadians need reliable, reasonably priced access to broadband to secure our future today.
Is the government breaking its own promise to reduce rates, or what is the plan?
View François-Philippe Champagne Profile
Lib. (QC)
Mr. Speaker, I would say to the hon. member that we share the same goals of affordability, competition and innovation. That is why we have been relentless in promoting competition to lower prices while working to improve quality and increase the coverage of telecom services across our nation.
As the member knows, we are ensuring that Canadians pay affordable prices for reliable Internet services regardless of where they live in our nation. Every time I have a call with telecom companies or Internet service providers, I always push for better outcomes for consumers and for lower prices. I will continue to do that.
View Earl Dreeshen Profile
CPC (AB)
Madam Speaker, rural Canadians have been waiting years for accessible, affordable and reliable Internet service. Last week, the Liberal-appointed chair of the CRTC, who has previous ties to big telecom companies, slashed hopes with a reversal of the commission's previous decision on wholesale access rates.
My constituents are tired of this backroom lobbying by large telecom companies. Why does the Liberal government consistently refuse to stand up for Canadian consumers, and why has it abandoned its election platform commitment to affordable Internet services?
View François-Philippe Champagne Profile
Lib. (QC)
Madam Speaker, I would say that we are standing up, and we share the member's goal, and I think the goal of all members in this House, around affordability, competition and innovation. The member will know that our government has been relentless in promoting competition to lower prices while working to improve the quality and increase the coverage of telecom services in Canada. We are ensuring that Canadians pay affordable prices for reliable Internet services, regardless of their postal code.
We will keep working with service providers and we will fight for—
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-05-31 14:30 [p.7621]
Mr. Speaker, in a stunning reversal, the CRTC has decided to increase the wholesale fees that small Internet service providers are forced to pay to the large telecom oligarchs in the country. This, of course, reinforces the exceptionally high prices that Canadians already pay for connectivity that is much less expensive in other OECD countries. It also runs against the Liberal promise to reduce rates by 25%.
Is it not time that we change this uncompetitive oligopoly and provide more competition and choice to consumers?
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