Okay. Will do.
Before any measures are introduced for insured mortgages, there should be a thorough review of the existing mortgage system through a lens of fairness and access for first-time home buyers. Other adjustments, like longer-term seven-year or 10-year mortgages, as encouraged by the Bank of Canada, and 30-year amortization periods for first-time buyers, would be better routes in the insured mortgage space.
On the supply side, the federal government should use its financial and suasion levers to encourage and support provincial and municipal government efforts to streamline permitting and approval processes to speed up construction, reduce project financing costs and bring more supply online faster. It should provide leadership through CMHC on the key challenges to new construction, which are zoning restrictions, density limits, process delays and, very importantly, Nimbyism, including not just social but market-rate housing.
CHBA was pleased to see support in the budget for a conversion of commercial space to residential and further recommends that conversion guide such retrofits to support those efforts.
CHBA was also pleased to see the expansion in the budget of the rapid housing initiative and recommends the extension of the timelines to better reflect true construction timelines, especially given supply chain volatility.
As well, the success in cutting through red tape of the RHI shows that federal leadership of a similar type could also be used to accelerate market-rate housing supply.
Also related to supply, CHBA was pleased to see the emphasis by the government on skilled workers and apprenticeships, with labour shortages already a challenge. With some 22% of the construction workforce set to retire over the coming decade, getting more young Canadians into the industry is essential.
With respect to lumber, industry and consumers are currently incurring tens of thousands of dollars in cost increases for new homes, negatively affecting builders with contracts already in place, challenging the viability of projects and even businesses, and further deteriorating affordability for consumers. Due to material shortages, closing times on new houses are now delayed across the country by an average of six weeks, according to a recent survey of our members. Builders and developers are now starting to pull back on housing pre-sales and starts due to material price volatility and supply concerns. This will only further add to the housing supply shortage. The federal government needs to investigate all issues related to the Canadian lumber supply and investigate potential solutions to ensure a reliable and increased supply within Canada now and in the future.
Finally, with respect to energy efficiency and climate change, CHBA is pleased to see the support being provided to energy retrofits. The greener homes initiative grants and support for energy advisers, plus the addition of the $40,000 loan program, all based on the EnerGuide rating system, will help make big strides where there is the most to gain with respect to GHGs in the housing sector and existing housing stock. The requirements to keep receipts will very importantly help fight the underground economy.
On the new construction side, CHBA continues to lead with its Net Zero Energy Housing Council and home labelling program, which has now labelled over 600 homes across the country and is leading the way in finding the best way to reach these levels of performance while also addressing barriers to broader diffusion, such as affordability.
At the same time, CHBA continues to caution against regulating higher levels in code before more affordable solutions are found and encourages the government to invest more in innovation to do so.
Thank you very much for your time today. I look forward to answering any questions you may have.