How the parties plan to tackle housing affordability

Maybe you own a home, or maybe you want to, or maybe you've written it off as a financial impossibility. In any case, you might be wondering what sort of housing promises the big three political parties are trotting out for Election 2021. Here's a breakdown of some of the standout pledges targeted at the home-ownership market.

SUPPLY

From the NDP, supply-related proposals target the creation of affordable rental housing, while the Liberals and Conservatives are also focused on getting more homes for purchase on the market.

The Liberals promise $1 billion for rent-to-own projects, which would require participating landlords to commit to charging a renter lower-than-market rent to allow for down-payment savings and to offer ownership within five years. There's also a plan to invest $4 billion in a “Housing Accelerator Fund” that sets a goal of creating 100,000 “new middle-class homes” by 2024-25 through application-based funding for municipalities.

The Tories say they would require municipalities receiving federal dollars for transit projects to increase density nearby. They'd also review the federal government's real-estate portfolio and release at least 15 per cent for housing — which could include property, not just existing buildings, Leader Erin O'Toole has said.

Supply-side focus from the federal parties has generated nods of approval both from real-estate industry players and observers.

“We've seen home prices take off across the country in essence because there's been a significant lack of new listings, and this crazy demand that has been driving up the markets everywhere, really,” Conference Board of Canada chief economist Pedro Antunes said.

ACCESS, AFFORDABILITY

Whether they're pledging to “unlock home ownership” (Liberals), “make mortgages more affordable” (Conservatives) or bring “the dream of home ownership” closer to reality for Canadian families (NDP), all three parties have laid out measures targeting housing access or affordability.

For the New Democrats, this includes reintroducing 30-year CMHC-insured mortgages “on entry-level homes for first-time home buyers” and doubling the first-time home buyers' tax credit to $1,500. The Liberals would also do the latter, cut by 25 per cent the mortgage insurance premium charged by CMHC and roll out a $40,000 tax-free “First Home Savings Account.”

The Tories pledge to “encourage a new market” in seven- to 10-year mortgage terms, increase the eligibility limit for mortgage insurance and index it to home price inflation (CMCH doesn't currently offer it for homes over $1 million), “fix the mortgage stress test to stop discriminating against small business owners, contractors and other non-permanent employees including casual workers” and make it possible to renew a mortgage with another lender without a stress test.

FOREIGN INVESTMENT

All three platforms also take aim at the spectre of foreign investors and speculators driving up housing prices for everyday Canadians.

The NDP proposes a 20 per cent tax on the sale of homes to those who aren't Canadian citizens or permanent residents, while the Conservatives pledge a two-year ban on home purchases by investors not living or moving here. The Liberals would also ban new foreign ownership for two years.