“We have not hit the bottom yet:” Jasper council asks province for budget funding

TORONTO – Experts say Ottawa’s changes to mortgage rules could help spur demand among potential homebuyers, but supply challenges are likely to persist in Canada’s real estate sector despite lofty goals to build new housing.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment. The price cap for insured mortgages is set to move to $1.5 million from $1 million, marking the first boost since 2012.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

Speaking at a luncheon panel in Toronto on Tuesday, Mortgage Professionals Canada president and CEO Lauren van den Berg praised those changes as “fantastic news” designed to address significant pent-up demand in the market.

“We’re seeing nowhere near enough supply and we’re seeing people go from excitement about the possibility of that dream of homeownership to desperation,” said van den Berg.

“I don’t think we can hide our heads in the sand when it comes to demand and only focus on supply. I think recognizing the situation we’re in is step one.”

The event, billed as a discussion on Canada’s housing affordability crisis, also heard from Desjardins chief economist and strategist Jimmy Jean. He was more downbeat on the changes, calling the announcement a “debt finance solution to affordability.”

“It gives the impression that things are affordable, but people just end up paying more interest over their lifetime,” Jean said.

The federal government touted the measures it announced Monday as the “boldest mortgage reforms in decades,” which came after a year of criticism over high housing costs.

In a note published on Tuesday, CIBC Capital Markets deputy chief economist Benjamin Tal said the government’s actions would likely accelerate the recovery of the housing market, a process he noted is already underway as interest rates have begun to fall.

“To prevent that from becoming too much of a good thing, we need to match the additional demand with supply,” Tal said.

“The core issue is the lack of supply available to respond to rapidly increasing population … The additions to demand from these mortgage changes will make it even more imperative to deliver on policies aimed at inducing more homebuilding.”

But Jean said it’s important to be practical about Canada’s strategy to build new homes in the coming years.

The Canada Mortgage and Housing Corp. forecasts Canada will require an additional 3.5 million housing units by 2030, on top of the 2.3 million already projected to be built, to restore affordability to levels seen in 2004.

Jean said achieving those targets would mean pulling much of Canada’s labour and capital resources into one sector, leading to shortages elsewhere in the economy.

“We’ve been focusing on supply, supply, supply, but we need to be realistic,” he said.

“We’ve seen this for the last two, three years and how slow things are moving. I think the solution has to be on the demand side and what’s being done to really curb that demand in order to balance out the market.”

Van den Berg said she was hopeful the federal government’s moves would generate momentum on the housing file, as she described a “sense of agitation” among homebuyers that her association hears from.

She said the Bank of Canada’s three consecutive cuts to its key lending rate, along with economists’ predictions of more to follow in the coming months, have sparked “cautious optimism” among those waiting on the sidelines.

“It’s something that our members have asked for because it’s what they’re hearing from their clients on the ground,” she said of the mortgage rule amendments.

“They’ve asked us for this because it’s a critical piece of the affordability puzzle, a critical piece of the accessibility puzzle when it comes to this housing crisis.”

This report by The Canadian Press was first published Sept. 17,2024.

The Canadian Press. All rights reserved.

HALIFAX – A prisoner rights group says the Nova Scotia government must pass a law requiring independent monitoring of the province’s jails.

In a report released today, the East Coast Prison Justice Society says provincial inmates complain of issues such as prolonged lockdowns and poor access to health care.

The group’s annual report is a compilation of comments gathered from nearly 800 phone calls from Sept. 1, 2022, to Aug. 31, 2023, with inmates in the jail system.

Inmates also complained of little access to cultural and spiritual support programs, particularly for African and Indigenous Nova Scotians.

The group issued 42 recommendations, including that the province launch an independent review to identify necessary changes to the jail system, including on issues such as health care.

Barbara Adams, the province’s justice minister, told reporters this morning the province is open to an independent review but offered no further details.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

MONTREAL – The Bloc Québécois dealt a painful blow to Prime Minister Justin Trudeau in Monday’s byelection, winning the Liberal stronghold of LaSalle-Émard-Verdun by 248 votes. Here are five things to know about the Montreal riding.

1. It’s existed since 2015

The riding is located southwest of downtown Montreal, and includes parts of the boroughs of Verdun, LaSalle, and the Sud-Ouest. It was created ahead of the 2015 election, and was originally named LaSalle-Verdun. Liberal David Lametti, who was justice minister from 2019 to 2023, held the riding from its creation to his resignation earlier this year.

2. It’s been home to political heavyweights

The riding, in both its past and current forms, has been represented by a number of prominent politicians including former prime minister Paul Martin, who held the LaSalle-Émard riding for 20 years, from 1988 to 2008. Liza Frulla, who held several cabinet posts in Martin’s government, represented the former district of Jeanne-Le Ber, parts of which are in the territory of LaSalle-Émard-Verdun.

3. It’s considered a Liberal stronghold, but parts of it have changed hands before.

LaSalle-Émard-Verdun has been described as a Liberal stronghold, and sections of it have been staunchly Liberal for decades. However, Jeanne-Le Ber was won by three different parties during its existence — between 2004 and 2015 — including the Liberals, NDP and the Bloc Québécois, which held it from 2006 to 2011. Both Jeanne-Le Ber and LaSalle-Émard voted NDP during the so-called “orange wave” of 2011.

4. It’s linguistically mixed

More than 55 per cent of residents reported speaking French most often at home, compared to just over one-quarter who reported speaking English, and 12.5 per cent who spoke a non-official language, according to census data reported by the Libary of Parliament. Spanish, Mandarin and Italian are among the most frequently spoken languages besides English and French.

5. Bloc Québécois gains

The Bloc’s Louis-Philippe Sauvé earned 28 per cent of the vote in a tight three-way battle over Liberal Laura Palestini, who finished second, and the NDP’s Craig Sauvé, who was third. The win represents a rise in the fortunes of the Bloc since the last election in 2021, when the party’s candidate finished a distant second to Lametti in the riding. The party’s only other seat on the Island of Montreal is La Pointe-de-l’Île, in the east end, held by Mario Beaulieu. The Bloc now has 33 seats in Parliament.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.