Evidence of meeting #29 for Finance in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was need.
A recording is available from Parliament.
4:40 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
I'll do my best.
4:40 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I appreciate your availability today.
I'll just get the four out and then you can answer, depending.
First off, when it comes to commercial rent relief, would you agree with many people that the fact that it has to go to landlords who have a mortgage makes it too complicated and that those may be part of the changes hopefully that are brought in very soon? It's certainly an issue in my end of the country, in British Columbia.
Secondly, having CMHC manage the commercial rent relief program, doesn't that also mean that you would be able to—if the government chose to—administer a residential rent relief program? And I know the issue of jurisdictions, but the reality is it's the same jurisdiction whether we're talking about commercial or residential rent relief.
4:40 p.m.
Liberal
The Chair Liberal Wayne Easter
Peter, could we just take those two and then get your other two, and give them time to answer? I think it's easier that way, clearer for everyone.
Go ahead.
4:40 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
I'll be very brief. We will not require a mortgage. To your first question, I agree, that would be an unnecessary hardship, and that condition does not exist. There was some thinking that might be the case. It's not the case.
To your second question, yes, of course, we could administer a residential rent relief program, but the decision has been made that the provinces and territories perhaps would occupy that jurisdiction, given that the federal government has provided income support that will help with rent through the CERB.
4:40 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you for that.
Thanks, Mr. Chair. Now I'll go to my other two questions.
For the 12% of mortgages in deferral, does CMHC track how many of these mortgage deferrals have been approved without the penalties, interest compound fees, that we have seen certainly in my riding so many times?
My final question is in the same vein as Ms. Dzerowicz' question. We have half a dozen sites that the City of Burnaby has set aside for affordable housing. We're finding it very difficult to access this, and when you talk about $18 billion, I'm stunned, because homelessness, of course, is increasing in this country. It's becoming a bigger problem in my region especially.
Is there any type of internal evaluation that CMHC is doing around how difficult it might be to access the current program and whether the monies that are being laid out are actually helping to address the problem?
4:40 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
If I may, I'll answer in reverse order.
We publish quarterly our results in terms of construction and units repaired under the national housing strategy, program by program, so that is being done.
We've achieved an 18% increase in approval times. Notwithstanding the crisis, we're aiming by the end of the year to halve our approval times, so that's under way.
With respect to the number of mortgage deferrals that are attracting interest on interest, they all are. That's a contractual term associated with mortgages that people have agreed to.
4:40 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
We'll put out the credit union movement and both Vancity and Community Savings moving to 0%. I think that needs to be mentioned, but thank you for responding to the questions.
4:40 p.m.
Liberal
The Chair Liberal Wayne Easter
Okay. Thank you.
Mr. Poilievre, the floor is yours, and then we'll go to Ms. Koutrakis and Ms. May for a quick question.
I believe Mr. McLeod might want in as well.
Go ahead, Pierre.
4:40 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Chairman, I'm going to cede my time to Michael Cooper, and then if he has any left, he can hand it back.
May 19th, 2020 / 4:40 p.m.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Thank you very much.
I want to ask a few questions in relation to the first-time homebuyer incentive.
When that program was launched about a year ago, it was estimated that it would help 100,000 Canadians to purchase a home. Is that correct?
4:45 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
It was estimated that it would help up to 100,000 Canadians.
4:45 p.m.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
It was up to 100,000, and it was also estimated that in the first six months there would be 20,000 approvals. Is that correct?
4:45 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
It was estimated that there would be “up to”. In fact, in my testimony at this committee in response to a question last May, I said that the maximum recipient number was 39,000 per year and that over two and a half years, 100,000 would therefore be an upper limit.
4:45 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
Yes, per year, that is the number of people to whom it would apply, not those who would apply but to whom it could apply.
4:45 p.m.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Thus far, we haven't seen 39,000. We haven't seen 20,000. We've seen 2,950. Is that correct?
4:45 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
That is also correct.
Actually, no, there is an updated number. Keep going and I'll get you the updated number.
That number was as of the end of 2019.
4:45 p.m.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Yes.
That just strikes me as being very much on the low end. Nobody was talking about 2,950 a year ago, or six months ago. I wonder if you can explain why so few Canadians have benefited from this program.
4:45 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
That program was designed as an alternative to easing the stress test or increasing amortizations, both of which would have involved more borrowing and an easing of credit standards that would have aggravated already high levels of household debt.
The reason it hasn't been taken on is probably a combination of either lack of demand, because those people are already well enough supported and those who said they needed more and there was a crisis on our hands were not factual, or they had a view that house prices were going to go up and they didn't want to share it, as opposed to house prices going down and those motivations would change.
4:45 p.m.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Clearly, it's a program that is not working, but Canadian taxpayers are on the hook for $1.25 billion to date, right?
4:45 p.m.
President and Chief Executive Officer, Canada Mortgage and Housing Corporation
No, taxpayers are only on the hook for what's actually been spent. They're not on the hook for $1.25 billion. That won't be—
4:45 p.m.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
No, but the government has committed $1.25 billion.