Mediaplanet sat down with the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities to discuss Canada's housing crisis, outlining government initiatives that can ease the first-time home buying process.
How does the government plan to collaborate with real estate stakeholders and developers to encourage the creation of affordable housing options tailored to the needs of first-time buyers?
The housing crisis is impacting Canadians in every region of the country, and has a unique impact on those seeking to buy a home for the first time. The rising cost of buying a home has created a generational wealth gap between those who got into the market years ago, and benefitted from the extraordinary growth in their home’s value, and those who are not able to save for a downpayment, not just because they are unemployed or because they come from a low-income household, but because the price of a new home in markets across Canada is out of reach for many middle class families who don’t have significant financial support from their parents.
We can overcome this phenomenon, and my engagement with the sector tells me that we, as a society, know how.
Canada faces a shortage in housing supply. We need to build homes, and we need to build them by the millions. In order to
remedy the supply gap, we must implement measures to reduce the cost of home building, including tax measures and low-cost financing programs that incentivize home construction.
Second, we must help change the way cities build homes by incentivizing faster municipal permitting processes, and encouraging more density where infrastructure, services, and opportunities already exist.
Third, we need to embrace a new way of building homes by encouraging workforce development in home building and increasing the manufacturing of factory-built homes.
We need to build homes, and we need to build them by the millions.
at times, bad actors, to buy up properties that are not being used to provide homes for families, including short-term rentals, mortgage fraud, and other challenges that have artificially restricted supply that exists but is not available in the market.
Fourth, we must directly fund the construction of more affordable housing for low-income Canadians who cannot afford a place to live in the market.
Fifth, we should embrace opportunities to help first-time home buyers save for their first home through measures that make it easier to save for that downpayment.
Finally, we need to target challenges in the sector that have caused investors and
Though not all of these measures explicitly target first-time buyers, we know that growing the supply for buyers, renters, and low-income families will help ease pricing pressures in the market, and supporting a new generation of home-buyers through targeted incentives will ensure those who missed out on home ownership because of the generation they were born into have a fair shot at owning a home if they choose.
The Current State of Housing Stresses the Need for More Collaboration
Without true collaboration between governments, the private sector, and public-interest groups, efforts to address Canada’s housing crisis will always fall flat.
Shaheed Devji & Trevor Hargreaves, BC Real Estate Association
For decades now, the housing sector has been a crucible of economic and social challenges, and despite efforts from governments of all stripes at all levels to find solutions to the housing affordability crisis, owning and renting a home has never been more difficult.
The way of the past has not been effective enough. Policymakers, stakeholder groups, and the public all have decisions to make that will affect the state of housing for the foreseeable future. We can settle for the same old reactive approach to housing policy, or we can demand better — a new, more comprehensive and collaborative approach.
Housing issues are intertwined, complex, and multi-faceted. To properly tackle these issues, it’s going to require equally diverse groups of carefully chosen policy experts from across government and the private sector working collaboratively to share ideas and pretest policy for unintended problems before new housing measures are announced. This structure could be used to great effect at both the provincial and federal levels. Effectively, we would be creating a permanent housing roundtable.
How You Can Elevate Your First Home Experience
From cleaning devices to kitchen appliances to beauty tools, SharkNinja® is your one-stop shop for high-performing and affordable small household appliances.
Ken Donohue
As an industry disruptor, SharkNinja® has established itself as a powerhouse in home products through its dedication to cutting-edge innovation, excellence in quality, and customer satisfaction. With a broad array of products that consumers love, think of SharkNinja® as a personal concierge for your home. The company strives to identify known and unknown consumer problems and is dedicated to developing products that positively impact people’s lives every day, in every home around the world. Its product line spans 31 categories and includes hightech tools for cleaning, comfort, and utility across your kitchen and living spaces.
Creating a perfect first home
You’ve just got the keys to your new home and finished unloading your last set of boxes. Before anyone gets too comfortable, you want to ensure your floors and carpets are clean and free of stains. SharkNinja® offers you that peace of mind with their wide range of cleaning innovations that ensures every surface — whether it’s hardwood or carpet — gets the love
Take the Shark® Cordless Detect Pro™, with four deep-cleaning technologies that detect and react to dirt. It also auto-empties, sealing in dust and debris, while odour-neutralizing technology keeps bad odours away. And there’s no need to hire expensive carpet cleaners when you’ve got Shark®’s StainStriker Portable Carpet and Upholstery Cleaner™. The dual-activated solution offers 20 times more stain-striking power than industry leading spot cleaners, eliminating stains and instantly and permanently removes tough odours.
Ambience and comfort
Your furniture is now in, artwork has given your walls a pop of colour, and you love how everything looks. You can enhance the ambience and comfort of your home with the incredibly quiet and powerful FlexBreeze Fan, which comes with a mist attach-
ment. Cordless or corded, indoor or outdoor, flexibility is your friend. And when you want the air in your house to be perfect (well, 99.98 per cent perfect), choose the Shark® NeverChange™ Air Purifier MAX to capture particles, dust, and dander from your home.
You’ve invited your friends and family to the housewarming, and now the day arrives. Your new home is sparkling clean, and now it’s time for you to look dazzling thanks to the new Shark® Beauty tools. Hair stylers, dryers, and smoothers will have you ready for any red carpet.
The main course is easy thanks to SharkNinja®’s extensive range of appliances and cookware. It’s like having a professional kitchen assistant in your home. The limit to your menu creativity is your imagination. SharkNinja® has something that will help make everyone feel like a celebrity chef.
When your guests arrive, impress them with the delicious Ninja® Thirsti™ Drink System, featuring thousands of still and sparkling drinks that you can personalize at the touch of a button. After your guests are done with refreshments, dinner is sizzling on the Ninja® Woodfire™ Grill — an all-inone cooking experience that seamlessly transitions between a versatile grill, BBQ smoker, and outdoor air fryer. The integrated smoke box, high-powered convection fan, and specially designed Ninja® Woodfire™ Pellets work together to create a natural wood fire flavour. And if that’s not enough, spoil your guests with the Ninja® CREAMi® Deluxe 11-in-1 Ice Cream and Frozen Treat Maker, which delivers ice cream, sorbets, and milkshakes at the touch of a button. Healthy or indulgent, it’s your choice — but you’ll be asking yourself why you haven’t always had one.
SharkNinja® knows you have a busy lifestyle. They also know you want multi-functionality in household products, better performance, and value. That’s why their team of more than 700 engineers is constantly working to bring this combination together.
How a Home Inspection Can Save You from Headaches (Literally)
Buying a home is likely the biggest investment you’ll ever make. Protect it with a home inspection and indoor air quality test.
Professional inspection companies, such as Inch by Inch Inspections, give you peace of mind with knowledge about the home or commercial property you’re purchasing. Since inspectors vary in experience, ability, and thoroughness, make sure you engage with a professional inspection company.
Inch by Inch prides itself as a onestop shop offering a range of services, including home and commercial property inspections, indoor air quality testing, mould inspection and remediation, and asbestos testing and inspections. Inch by Inch adheres to the industry’s largest, most comprehensive standards of practice and abides by the International Association of Certified Home Inspectors, as well as the International Association of Certified Indoor Air Consultants (IAC2). It believes clients should arrive at their own conclusions about a property by being provided with objective results and solutions.
Peace of mind
A home inspection is easy to complete and typically only takes a few hours. Certified inspectors will assess the exterior and interior of your home or building, including electrical, plumbing, roofing, HVAC, and foundation. These inspections can uncover potentially life-threatening problems, such as mould or faulty wiring that can cause serious fires.
Many lenders won’t offer financing on a property without an inspection. But don’t wait for the bank to demand one — a home inspection gives buyers peace of mind by identifying any potential issues before closing. It can also be used as a contingency in your contract with the seller, allowing you to back out if the inspection reveals significant defects that you don’t want to take on.
The inspector provides a detailed written report, which they’ll discuss with you so you’ll know of any safety issues or minor or major defects. This lets you know what work might be needed in the short, medium, and long term.
Breathe easy
The air you breathe inside your home shouldn’t make you sick. An often-overlooked feature of any home is indoor air quality. While your nose can be your preliminary air quality test, most of us don’t have the knowledge and expertise to detect issues of poor air quality. An air freshener is not a solution to poor air quality — it simply disguises the problem. An expert is needed to assess and remove the pollutants. Inch by Inch uses state-
of-the-art technology to test indoor air quality and provide property owners with a detailed analysis of pollutants and other factors contributing to poor air quality.
Many factors inside and outside the property can create a buildup of pollutants in the air, which can result in short- and long-term health problems.
Hiring a professional inspector means these health issues, some of which can be serious, can be alleviated and future air quality issues and health risks prevented.
Some common pollutants that impact air quality in a home include:
• Airborne spores and bacteria from mould
• Allergens created by poor air circulation
CO2 buildup from improper venting
Organic chemicals
Off-gassing from old asbestos installations
Inch by Inch prides itself as a one-stop shop offering a range of services, including home and commercial property inspections, indoor air quality testing, mould inspection and remediation, and asbestos testing and inspections.
Test for mould
The biggest culprit contributing to home air quality issues is mould growth. Mould is an organic fungus that can easily fester and develop in areas of poor air circulation and humidity. Unmanaged, mould can continue to grow and take over walls, fixtures, wood components, and even carpets, releasing harmful mould spores and bacteria. The two biggest factors contributing to mould growth are blocked airflow and humidity. Restricted airflow doesn’t allow moisture to evaporate, leading to increased humidity in a defined space, including basements, attics, garages, laundry rooms, kitchens, and unfinished parts of a home.
When you think there are issues of poor air quality or a mould problem in your home, trust a professional who can test for and remove mould, asbestos, bacteria, high levels of CO2, and more.
Ken Donohue
Need Help Navigating the Money and Questions of Home Ownership?
It can be hard to know where to even begin for first-time home buyers. Meet the “where to even begin” professionals.
D.F. McCourt
When you purchase your first home, it’s likely to be the biggest financial endeavour of your life. It can be intimidating and overwhelming, especially in today’s market, where interest rates and housing prices are sitting at or near alltime highs. You want to walk the path toward your goal of home ownership, but you don’t know where to put your feet. Fortunately, you don’t have to take that first step on your own.
“Navigating the process of buying a home and securing a mortgage can be really stressful without the right advice,” says Lauren van den Berg, President and CEO of Mortgage Professionals Canada. “Mortgage brokers and other mortgage professionals can help make sense of it all and set you in the right direction. They’ll be with you every step of the way to answer your questions, guide you to your new home with personalized advice, and ensure you get the best financial products possible that fit your family budget, not just for where you are now, but for where you’ll be in the future.”
Mediaplanet sat down with Lauren van den Berg to ask some of the most pressing questions Canadian home buyers may have and to learn how any of the more than 15,000 members of Mortgage Professionals Canada can help you navigate the mortgage process, whether you’re a first-time buyer or an existing mortgage holder.
How would you characterize the current homebuying economy and market conditions?
The housing affordability crisis across Canada is real and it is persistent. The average home price in the country’s two largest cities is well over a million dollars already and has been for a long time. We’re also seeing multi-decade highs in interest rates, which have made it much more difficult for Canadians to qualify for mortgages. That’s why we’ve been strongly advocating for the federal government to enact policy measures that would ease the burden on home buyers. Unfortunately, it may be not
How long are mortgages?
the right time to buy for some people. But for other people, it could be the perfect time to buy. It’s very much on a case-by-case basis.
When is the right time to engage a mortgage professional?
It’s so important to talk to a mortgage professional before you even start your home-buying journey. Mortgage professionals can cut through the noise, explain complex terms in simple language, answer your questions, and walk you through your family budget to find something that works for you.
How much do mortgage professionals charge for their services?
Mortgage professionals are typically paid through commissions from lenders, so the home buyer isn’t on the hook. There’s literally nothing to lose when it comes to getting the best mortgage advice tailored to your needs by talking with a mortgage professional.
Is there a reason to consult a mortgage professional if you already have a mortgage?
Yes! Almost 60 per cent of all outstanding Canadian mortgages are soon due to renew. With interest rates at record high levels, this is a situation that can easily lead to payment shock. Depending on where they are in the country, some borrowers could see their payments rise from anywhere between 30 to 60 per cent. Mortgage renewal should be seen as a fantastic opportunity to speak with a mortgage professional at no cost. At renewal, you have a chance to renegotiate your mortgage or switch to a new lender for a better deal. You want someone on your side in this moment, offering objective and unbiased advice.
How can you find a good mortgage professional?
Visit findmeabroker.ca for advice that can help you cut through the noise, ease some of that scary pressure, and find a custom solution that’s going to fit your unique needs in your local market.
Navigating the process of buying a home and securing a mortgage can be really stressful without the right advice.
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How long are mortgages?
How do I get a mortgage?
Who do I speak to?
What is a good mortgage rate?
What is a mortgage?
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Best mortgage rates in my area What rate should I get?
Is it a good time to buy?
Who do I speak to?
Is it a good time to buy? Is it a good time to buy?
Best time to get a mortgage?
What is a good mortgage rate?
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What is a good mortgage rate?
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Lauren van den Berg President & CEO, Mortgage Professionals Canada
The Current State of Housing Stresses the Need for More Collaboration
Doing away with decisions made behind closed doors
As it stands, ideas are being crafted and announced by often inexperienced government staffers, many of whom have no practical experience in the sector in question.
Since this is a national crisis, let’s approach the issue with the appropriate resources and effort. Too often, proposed solutions to Canada’s housing crisis have been focused on quick fixes to calm public outcry at the latest bidding wars and soaring prices. Measures aimed at helping prospective buyers save more money for down payments are well-intentioned but don’t do enough. Other measures, such as the foreign home buyer’s tax, are failed policies before they’re even announced. They sound strong. They sound exciting and bold. But they also affect only a few minor percentage points of the total market and have practically no effect on housing prices.
Meanwhile, decades of neglect in housing supply management form the bedrock of the affordability crisis. Governments have failed to keep pace with population growth, leading to an acute shortage of housing stock. Concurrently, record-high levels of immigration have added strain to already stretched resources, exacerbating the demand-supply imbalance.
Two steps forward, one step back On our side of the country in British Columbia, the NDP government led by David Eby
has made valiant efforts to address the lack of supply with its Homes for People plan. By providing more types of housing — including laneway homes and secondary suites — across the province while speeding up the approval process, the focus has shifted to building more homes with fewer barriers. However, these measures were not universally welcomed. Some municipal governments, which bear the brunt of the responsibility to speed up development and permitting timelines, were openly critical, citing interference from the provincial government in municipal matters.
Federally, the Liberals have also put additional focus on increasing housing supply. But again, their efforts have not been without controversy.
In September 2023, Housing Minister Sean Fraser was in B.C. to announce funding for homes in Surrey and Burnaby through the federal Housing Accelerator Fund. The minister ended up cancelling his press conference after the Metro Vancouver Regional District contradicted his announcement, voicing the need for development cost increases.
The fact that governments are working at odds once again illustrates the need for a more formal, consensus-driven policy approach that puts all levels of government on the same page.
Putting politics aside for the greater good
At the heart of it, these types of disagreements are the result of a fundamental flaw in the approach to dealing with the housing crisis and, frankly, most are issues that are political in nature. It screams of a lack of collaboration and consultation. There are far too many instances of the government working in isolation only to unveil a policy with immediate flaws that need to be remedied once market tested.
The solution is the creation of permanent roundtables, both provincially and federally, where different groups can contribute to the process of finding solutions to the housing affordability crisis. These solutions, due to the collaborative nature of such working groups, would be thorough, broad, and tested.
The policy experience and innovative solutions offered by public interest groups and private entities are often underutilized, hindering the development of holistic strategies. By harnessing the expertise of the private sector and fostering meaningful dialogue between all stakeholders, we can forge a path toward a more equitable and sustainable housing future.
For too many Canadians, the dream of homeownership is slipping away.
There are too few homes for too many people. Couple that with higher interest rates, excessive red tape delaying construction and driving up costs, and not enough tradespeople to build new housing – and we have an affordability crisis.
We need to take bold action before it gets worse.
In 2022, the Housing Affordability Task Force presented the Ontario government with the road map to build 1.5 million new homes by 2031, with 55 recommended changes to address the housing affordability crisis.
Since 2022, Ontario has fully or partially implemented 76 per cent of those recommendations, according to the Ontario Real Estate Association’s (OREA) latest report, Analysis of Ontario’s Efforts to Boost Housing Supply.
This is a good start, but there is more to do. A quarter of the recommendations have
yet to be started, and the government’s own projections fall short of meeting the goal of 150,000 new homes per year. We need to build houses that families can actually afford. Here’s how.
Action Items to boost affordability now First, deal with the development charges adding up to $150,000 to the cost of building a house. Often, the largest portion of these upfront charges is to connect houses to water and wastewater services. Allowing water and wastewater services to be provided through a municipal services utility corporation would allow municipalities to finance infrastructure over time, the same way that hydro and natural gas expansion projects are financed. Actual users pay for infrastructure over decades. This could take as much as $50,000 off the price tag of a new home. Second, modernize zoning and support “mixed use” developments. Vacant offices in downtown cores or suburban plazas are a perfect opportunity for innovators
to bring new kinds of housing onto the market. Building housing on top of retail or in commercial buildings can keep Main Street thriving.
Put an end to exclusionary zoning, province-wide Third, put an end to exclusionary zoning. This is the biggest key to unlock homeownership in urban areas. For a long time, if you owned your house, you could knock it down and build a four-storey monster home. But if converting it to three townhomes you would be hit with a tsunami of NIMBY resistance, red tape, and fees. Toronto, Guelph, London, and other municipalities across Canada are leading the way — changing their zoning rules to allow homeowners to build up to four units on their own property without being hampered by red tape.
If Ontario and other provinces adopt this policy province-wide, they will get units to the market with gentle density.
These three action items — plus the seven more in OREA’s analysis (at orea. com) — will help create future generations of homeowners by enabling growth.
