Mr. Speaker, I am pleased to address the House and the issues raised by the member for Kelowna concerning mortgage insurance in Bill C-66.
I would like to respond at the beginning by asserting that the government is against Motions Nos. 1, 2 and 4 to 6 proposed by the member opposite.
I would like to stress that Bill C-66 supports the Government of Canada's efforts to make government more efficient and provide better service to Canadians. The changes to the mortgage insurance and guarantee legislation put forth by the member for Kelowna would put at risk the benefits Canadian families gain from CMHC's work in housing finance and threaten chances of progress.
Through CMHC's mortgage insurance and mortgage backed securities program, the Government of Canada has important levers to promote housing affordability and choice, to ensure access to mortgage funds as well as competition and efficiency in housing finance, to protect the availability of adequate housing funding at low cost, and to contribute to the well-being of the housing sector in the national economy.
Mortgage loan insurance and mortgage backed securities have been important public policy tools of the Government of Canada, tools which have made it possible for millions of Canadians to realize their dream of owning a home, and this at no cost to the government.
The hon. member for Kelowna would have us throw away the benefits of bringing in more funds from the capital market by limiting mortgage backed securities and proposes uses for mortgage insurance that could stifle our country's ability to improve the availability and affordability of housing.
The new section 3 of the National Housing Act clearly sets out the mandate and limits of CMHC's functions in housing finance:
The purpose of this Act, in relation to financing for housing, is to promote housing affordability and choice, to facilitate access to, and competition and efficiency in the provision of, housing finance, to protect the availability of adequate funding for housing at low cost, and generally to contribute to the well-being of the housing sector in the national economy.
How much clearer can one get? Why would this government give CMHC the uninspired and limited means proposed by the member for Kelowna when its mandate is much more compelling and much more clear? Why would the House regulate CMHC's activities in the same way it oversees privately owned financial institutions when it can govern more directly with the input of Canadians?
The dream of owning a home is one shared by a great many Canadians. Unfortunately, many are unable to buy a house despite the fact they can afford monthly mortgage payments. The reason for this is that many families find it hard to save the money required for the down payment on a conventional loan.
Mortgage loan insurance has provided many Canadians with the opportunity to own their own home. In some cases it allowed them to buy sooner due to the lower down payment. In other cases it opened the door for people who would have otherwise never been able to buy a home.
I would like to give an idea of just how many Canadians depend on mortgage loan insurance in order to fulfil their dream of owning a home. In the past year CMHC has helped Canadians gain access to over 300,000 homes with the use of mortgage loan insurance, and this was done at no cost to the government.
The Government of Canada is committed to ensuring that mortgage insurance is available to homebuyers in all regions of Canada. The proposed amendments would allow CMHC to operate its mortgage insurance program on a more commercial basis. This will ensure that CMHC is able to compete on an equal footing with any private mortgage insurer. This means that all mortgage insurers, both public and private, are subject to the same regulations.
By guaranteeing competition in this sector, we can ensure that Canadians are able to have access to the best possible price and a greater number of choices in home financing products. Besides helping Canadians to become homeowners, CMHC mortgage insurance has also been key to the health of the housing industry in Canada. By fully protecting lenders against default on the part of borrowers, mortgage insurance encourages investment in residential construction. As a result, CMHC plays a central role in creating numerous jobs in this key sector of our economy.
In recent years CMHC has been approached to support many innovative products. With the new National Housing Act, CMHC will be able to bring the benefits of some of these new types of home financing products to the marketplace.
By simplifying the National Housing Act, CMHC would have the flexibility to consider products such as insurance for a reverse equity mortgage to enable older homeowners to use the equity in their home to obtain funds while allowing them to continue to live where they have lived for a long time.
CMHC would also be able to consider such ideas as non-mortgage financing for remote areas where the land registry system does not facilitate mortgages, or financing arrangements on Indian reserves where restrictions exist on providing land as security for mortgages.
Any new products to give Canadians increased opportunities for housing choice and affordability would be developed after careful consideration of their potential success in the marketplace.
The failure to remain competitive could reduce CMHC to a residential insurer with riskier loans. This would jeopardize mortgage insurance, self-financing and create the need for public subsidies.
Passing this legislation would equip CMHC with the necessary financing tools required to continue to provide Canadians with the opportunity to own a house. Bill C-66 will also strengthen CMHC's capacity to accomplish its goal of contributing to the well-being of the housing sector and our nation's economy.
In summary, the new National Housing Act will improve the service CMHC provides to Canadians and support the housing industry. Why would the hon. member for Kelowna want to jeopardize the viability of CMHC's mortgage loan insurance? Mortgage loan insurance is a service that has made a difference to over three million Canadian families since 1954. With Bill C-66, we want to ensure that the benefits governments provided to past generations will continue to be available to Canada's future generations.
Canadians across the country will benefit because of Bill C-66. Consumers will benefit in the area of mortgage financing. The housing industry will benefit through increased promotions of Canadian products and services at home and abroad. Canadians in general will benefit from new jobs created by the housing industry and enhanced service from CMHC.
The mandate of the national housing act is clear: to promote affordability and choice in housing while facilitating access to financial sources and encouraging competition and efficiency in this area. The legislation will ensure that this mandate will continue to guide housing policy implementation and future policy development.
Since its creation more than 50 years ago, CMHC has been involved in every aspect of housing. Its contribution to helping house Canadians is unequalled.
I hope that the members of the committee will support Bill C-66 so that CMHC can continue to make its contribution to improving the quality of life for all Canadians. I appeal to the members of the whole House to vote against the amendments and vote for the bill in its current form.