Make mortgage payments more affordable • YouBetcha

Current Status

Status: Not Started The government has not taken concrete, tangible action to review the mortgage market or address barriers to longer interest rate terms on mortgages.

Background

Housing affordability remains a pressing concern for many Canadians, particularly younger generations and first-time home buyers grappling with rising costs and limited options. The promise to make mortgage payments more affordable by reviewing Canada’s mortgage market was aimed at addressing these challenges, with a specific focus on expanding options for borrowers while maintaining market stability. A key component of this commitment was to examine barriers to longer interest rate terms, which could provide greater financial predictability for homeowners. Fulfilling this promise would require direct engagement with financial regulations, mortgage lenders, and market structures to identify and remove obstacles to affordability [4].

Evidence

Since the current government was sworn in following the 2021 federal election, there has been no documented evidence of specific, tangible actions taken to review Canada’s mortgage market as outlined in the promise. While housing affordability has been a stated priority, the government’s efforts have largely focused on adjacent initiatives rather than the direct review of mortgage market structures or barriers to longer interest rate terms. For instance, on May 3, 2024, the Prime Minister’s Office announced measures in Budget 2024 to make rental payment history count toward credit scores, a step aimed at supporting renters and potential home buyers. However, this measure does not address the core commitment to review the mortgage market or tackle barriers to longer mortgage terms [4].

Historical context from previous governments shows earlier programs like the First-Time Home Buyer Incentive, announced on March 20, 2019, which aimed to reduce mortgage costs for eligible buyers through shared equity with the Canada Mortgage and Housing Corporation (CMHC). This initiative, while relevant to affordability, predates the current government’s mandate and does not align directly with the specific promise to review the mortgage market or address longer interest rate terms [5].

Regulatory frameworks such as the Eligible Mortgage Loan Regulations and the Protection of Residential Mortgage or Hypothecary Insurance Act exist as part of the broader mortgage landscape, but there is no evidence of amendments or reviews initiated by the current government to fulfill this promise [1][3]. Additionally, the 2023-24 Departmental Results Report from Housing, Infrastructure and Communities Canada highlights a focus on linking infrastructure investments to housing outcomes, but it lacks any mention of specific actions targeting mortgage market reviews or longer interest rate terms [6]. Other potential sources of data were inaccessible due to rejected requests, offering no further insight into government action on this issue [7][8].

Assessment

The government’s record on this promise falls short of meaningful progress. Despite housing affordability being a central issue in public discourse, the current administration has not initiated a review of Canada’s mortgage market or taken concrete steps to address barriers to longer interest rate terms, as explicitly committed. Announcements and budget measures, such as the proposal to include rental payment history in credit scores, are tangential at best and do not constitute action on the specific components of this promise. Without evidence of a targeted review or policy changes directly tied to mortgage market options and stability, this commitment remains unaddressed.

The absence of action is particularly striking given the urgency of housing challenges facing Canadians. While broader housing strategies and past initiatives provide context, they do not substitute for the focused work promised on mortgage affordability and longer-term interest options. Until the government moves beyond rhetoric and adjacent policies to deliver on the precise terms of this commitment, Canadians are left waiting for the financial stability this promise aimed to support.

Current Status

Background

Evidence

Assessment

Sources