OTTAWA – Deputy Shadow Minister for Finance Tom Kmiec forced a debate during Wednesday’s Finance committee meeting with a motion to create a new subcommittee that would study the impact of the Liberal Government’s regulatory changes to Canadian mortgages, particularly the January 2018 changes that introduced a new stress test on homebuyers.
The motion was voted down by Liberal MPs.
Mr. Kmiec issued the following statement:
“This was the second motion that I put forward to study the harmful impacts these new mortgage rules are having on Canadian families. The Ottawa Liberals have said ‘no’ twice now, signalling that they do not care about Canadians who are struggling to purchase a home or renew their mortgage.
“The Ottawa Liberals have acted callously by subjecting Canadians to this mortgage stress test in a year where 47% of all mortgages need to be refinanced. Despite knowing that so many Canadians would face refinancing this year, they still imposed the stress test. That was irresponsible and unfair. Now the Ottawa Liberals are refusing to even hear evidence on what impact their changes are having on Canadians.
“Both of my motions have been reasonable attempts to gather more information on these new mortgage changes. I was willing to make amendments to my motion, and I was willing to be collaborative. The Ottawa Liberals, however, were unwilling to work with me to come to an agreement on a mortgage study.
“A home is the most important financial decision a Canadian will make, and likely the biggest financial asset they’ll ever purchase. Therefore, it’s totally reasonable to look at these new changes, and I’m going to keep pressing the Ottawa Liberals to do so.”
Why Does This Motion Matter?
Due to regulations put forward by Liberal/NDP governments both federally and provincially this sector has rapidly faltered, causing sales in the nations economic capital Toronto to drop quickly, while mortgage borrowing nationwide cradled to the lowest levels since 2014.
In a country with a rapidly expanding population, this combination of slow supply development and lacking purchases is a recipe for disaster.
Let’s hope the Liberals change their mind and allow for research into this issue before we are all left poorer as a result.