Mr. Speaker, I listened carefully to the remarks of the hon. member opposite. First, I did not want to raise a point of order earlier, but I take this opportunity to point out that this is a new expenditure for the Crown. We would take money out of a federal agency to hand out to the provinces. I do not think there is any doubt that this involves an expenditure. The hon. member opposite said that these programs are not new. As you know, this has nothing to do with the issue.
Here is an example. If I introduce a private member's bill that provides for the hiring of 100 inspectors by Agriculture Canada to inspect some kind of food that was not inspected up to that time, the problem will not be the hiring of inspectors in a new area, but the fact that a greater number of inspectors will be hired. So this is an extra expenditure, even if it is in the same category.
The member argues that he is not proposing new programs and that he is only suggesting taking money that is in the government's coffers and transferring it to provinces. However, that is of course money spent by the Crown. Be it the same program, an old program or a new one, a royal recommendation is needed, in my opinion, because it is a new expenditure.
The criteria are different in the case of reducing revenues. For example, if the bill sought to reduce premiums or something like that, I admit that it is not always the same criteria that apply. Here, in the House, we have had examples of private members' bills, which I did not always like, that sought to reduce the tax rate for certain people. The Speaker said that that met the requirements of the Standing Orders. The government's revenues were reduced, but there was no new expenditure. The criteria are different.
In any case, many Canadians wish to become homeowners. Without mortgage loan insurance, many would not be able to buy a house, ever if they could afford the necessary monthly payments. This is because many families would find it hard to save money to make the down payment for a normal loan. The down payment is always a problem for first-time buyers, particularly for young people and people with children.
Through its mortgage loan insurance, the Canada Mortgage and Housing Corporation, CMHC, has helped millions of Canadians finance the purchase of their home with a down payment of only 5% and interest rates comparable to those offered to buyers making a down payment of 25% or more.
I suspect that most of us in the House have, at some point, benefited from the mortgage loan insurance of the Canada Mortgage and Housing Corporation. It is easy to say today that the CMHC has higher reserve funds than before, through sound management by the current Prime Minister and the government. However, this does not mean that we should be less careful in how we manage public funds.
The Canada Mortgage and House Corporation approved more than 650,000 mortgage insurance applications last year. In some cases, the CMHC mortgage loan insurance has allowed individuals or families to buy homes sooner, giving them a head start on the road to financial stability.
There is no doubt that the sooner people buy their first home, providing of course that they can make the monthly payments, the sooner the cycle of mortgage payments will finish. Owning their own home, presumably without a mortgage, will provide them with the kind of stability that people enjoy when they own their home.
In other instances, the CMHC has helped open the door to homeownership for countless Canadians who might otherwise have been unable to buy a home of their own. For others it has played a key role in increasing the availability of affordable rental housing or the supply of beds in nursing homes, retirement homes, shelters and so on across the country, including the riding that I have the honour and privilege to represent.
Over the years the CMHC's mortgage loan insurance programs have also evolved to ensure that they continue to meet the requirements of the housing industry and the changing needs of Canadians.
While its investments in solid risk management tools and cost effective processes has meant a strong financial performance, the CMHC has consistently and proactively lowered its insurance premium to maximize the number of Canadians it can assist in attaining their dream, the dream of home ownership.
For example, the CMHC lowered its home owner mortgage loan insurance premium for the second time in two years this April offering first time home buyers with 5% down a total reduction of 30% in their mortgage insurance premiums relative to what it was a mere two years ago.
I do not know about other members in the House but I sure wish my car insurance and my regular home insurance could have premiums of 30% less than what they were two years ago.
If the CMHC is able to achieve this, this means that it has had prudent management, it is well run and it has been able to give these kinds of reductions for the benefits of Canadians who have mortgages.
At the same time, the CMHC has introduced a further 15% premium reduction on affordable rental housing developed through the CMHC's partnership centre, as well as a full waiver of premiums for rental housing projects funded under the federal affordable housing initiatives which were designed to serve those in greatest need.
To stimulate construction of affordable rental housing, the CMHC has also made several improvements to rental property mortgage insurance in recent months by permitting, among other things, high value loans in this sector; by reducing mortgage insurance premiums for rental properties; and by providing more leeway to borrowers in terms of cash flow, cash advances and conditions of repayment.
To allow more Canadians to obtain residential mortgage credit, the CMHC continues to improve its guidelines and to develop new mortgage insurance products. In recent years, it has introduced insurance for loan-to-value ratio refinancing loans provided to occupant-owners, and for mortgage guaranteed lines of credit, to provide Canadians with more flexibility in managing their finances.
To assist more buyers, the CMHC has also introduced a new product, thus enlarging the sources of funds permitted to form the down payment. CMHC has also improved its policies to allow self-employed Canadian workers and people buying a second home to obtain mortgage loans with a high loan-to-value ratio more easily than in the past.
The CMHC has established a track record of helping to make housing more affordable and accessible for all Canadians in every corner of the country. As all members of the House will know, in recent years Canada has experienced an extremely strong, healthy housing market thanks to the good finances and the well run government of this Prime Minister. That is why we should reject the private member's bill before us today, unless of course the Speaker rules it out of order at third reading, which I suspect he will.