Federal housing hope on the horizon?
May 20, 2025
Homeownership is the dream of most Canadians, and why not? Owning a home or condominium suite offers a sense of stability, belonging and the benefits of a solid long-term financial investment. In Canada, we have been building an average of about 227,000 homes per year over the past 10 years. To build the four million homes we need in the next few years, we must double this rate. This goal involves complex strategies, which should and will be addressed right away by our federal government.
Housing plan
With the Liberals recently being re-elected, we count on their plan to help the housing affordability and supply crisis we are experiencing. And rightly so. A key player in our economy, the housing industry supports wealth creation, economic growth, labour opportunities and productivity, plus investment in real estate and related industries. The great news is that the industry has been incredibly resilient in the past. Our homebuilders and developers can respond quickly to whatever federal program is put into place.
To address housing shortages and affordability challenges, numerous actions were proposed across the major party platforms. Among the various plans for all the parties, both the Liberal and Conservative platforms included eliminating the GST for first-time homebuyers for homes of less than $1 million (Liberal) and less than $1.3 million (Conservatives). Among the other proposals across all parties were to remove much of the red tape that hinders approvals process, cut development charges on selected new construction, eliminating land transfer tax for first-time buyers, and the legalization of fourplexes in residential areas. This complex problem will indeed require a comprehensive solution that will have an effect and instill consumer confidence once again.
Bold, creative solutions
We need bold, creative solutions on the parts of both our governments and housing industries. Think back to 1981, when mortgage interest rates zoomed up to 20-plus per cent. The federal government came up with a program to offer a $5,000 grant to anyone purchasing a home for under $150,000. The provincial government then piggy-backed that with an interest-free loan for those who purchased a home for less than $115,000. In turn, builders responded by finding creative ways to design and build homes more economically.
In the meantime, new-home buyers – especially those entering the market for the first time – can access government and private sector programs to help them afford their dream of homeownership. For example, Ourboro Inc. is a company that co-invests up to $250,000 to help buyers reach a 20 per cent deposit.
Our homebuilding industry is far too important to our Canadian economy to not maintain its health. Here’s hoping our newly elected government will act quickly and efficiently to help restore this critical component of Canadians’ enviable quality of life. We need to restore the reality of the dream of homeownership for as many Canadians as possible.