Thank you for the question.
Through you, Mr. Chair, supply is the solution to our problem. With our population growing by a million people in 2022, we absolutely need to build more homes. There are programs, as I discussed, that can help with the supply. The challenge with new supply is it takes many years to come online. With approval timelines and construction timelines, it is a minimum of five years before any project of any size comes online.
Looking to preserve existing affordability is an idea that can have immediate impact. CMHC came out with their MLI Select mortgage insurance product last March. I think it's an excellent product by design, where there are enhanced terms for affordability, accessibility and sustainability. However, based on the feedback that I have heard from big lenders and from other borrowers, the vast majority of the MLI Select that is being issued today is for sustainability. It's not for affordability. I think the issue is that the criteria in that product is set too high. You have to put 40% of the units of an existing building at the affordable level before you get any benefits. The loan benefits do not equate with the loss of economics.
That doesn't mean the project is bad. In fact, I think the project is great. We just need to find the right mix between economic incentives and social incentives. I think if we drop that number to 20% or 10%.... Ten or twenty percent of almost every building is a lot better than 40% of no buildings.