Conservative leader Andrew Scheer says he’ll “fix the mortgage stress test” and introduce other measures aimed at helping homebuyers if his party forms the government in October.
The Conservatives said in a release on Monday that the party would “ensure that first-time homebuyers aren’t unnecessarily prevented from accessing mortgages.” The release and accompanying backgrounder did not provide details on what fixing the mortgage stress test would entail.
The Conservatives also said they would work with the Office of the Superintendent of Financial Institutions to remove the stress test from mortgage renewals.
In addition to making changes to the stress test, the party promised to increase the maximum amortization period on insured mortgages to 30 years for first-time homebuyers in order to reduce their monthly payments. The current maximum amortization period for insured mortgages is 25 years.
The previous Conservative government under Stephen Harper reduced the amortization period on insured mortgages following the global financial crisis.
The Conservatives also pledged to make surplus federal real estate available for housing development in order to increase supply, and to launch an inquiry into money laundering in the real estate sector.
Earlier this month, the federal Liberals promised to enhance the first-time homebuyer incentive for buyers in Toronto, Vancouver and Victoria.