22 October 2019

Starting 2018, Mortgage Professional Canada (MPC) has asked all parties to bring back mortgage insurance eligibility for 30-year amortizations. The NDP and the Conservative Party added this offer to their platforms. Although the Liberals will hardly consider this question independently, in case of a minority government, the opposition has a chance to change it. MPC will also ask the NDP and Conservative Party for help in convincing the Liberals on this topic. Insurable 30 year amortizations represent a lower overall cost and risk for taxpayers than FTHBI, providing also a benefit for the first-time homebuyers.

In addition to it, MPC also asked all parties to cooperate with OSFI for removing the mortgage stress test in case of renewals or switching the banks. The Conservatives included it into their platform, and Liberals and NDP also support the idea.

Although many Canadians will want to see immediate changes, minority governments tend to last longest when making simple and not risky decisions. No one wants early election, as all the parties and their bank accounts are depleted now.