Addressing the pressing issue of Canada’s skyrocketing mortgages and interest rates, Jagmeet Singh, the leader of the New Democratic Party (NDP), criticized the federal government for its lackluster response to the inflationary crisis.
During his speech in Windsor this week, Singh expressed his concern that the government’s measures thus far have fallen short of resolving the crisis. He pointed out that the only solution proposed by the government was to allow the Bank of Canada to increase interest rates.
While blaming both parties for not being able to solve the crisis, Singh instead proposed his own plan: getting the federal government to subsidize people’s mortgages.
“We’re talking about what we can do right now to give people relief,” Singh said in a press conference. “There’s a lot of countries that are looking into real solutions to give people a bit of a break who are struggling with the cost of mortgage. We wanna see those aggressive steps be taken here in Canada.”
As an example, Singh cited Spain which forced banks to give lower interest rates to families who are struggling and Portugal which is giving subsidies to families in similar situations.
Last July 12, the Bank of Canada announced a policy interest rate hike, resulting in higher borrowing costs for consumers. Major Canadian lenders swiftly followed suit, matching the increase in alignment with the central bank.
“There are so many families that are wondering how to afford to keep their homes,” Singh said. He highlighted the sharp and rapid increase in interest rates that have been burdening families across the country.
In addition to the mortgage crisis, Singh emphasized that Canada is also grappling with a severe housing shortage. To tackle this issue, he stressed the urgent need to construct more affordable homes for both rent and purchase.
“We must accelerate the construction of homes that are within the means of ordinary Canadians. Massive investments are required, and we need to expedite these measures to provide financial relief and support to the people,” Singh asserted.
To encourage developers to build more homes, Singh called on the federal government to provide incentives. He emphasized the need for more rental units purpose-built for rent, as the current availability in Canada is insufficient to meet the demand.
“For many families, renting is a necessary stepping stone towards homeownership, and the lack of options is hindering their progress,” Singh explained.
Information for this story was found via CMP and sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
What does Jagmeet Singh suggest as a way to address the severe housing shortage in Canada? Why does Singh emphasize the need for more rental units purpose-built for rent?
Having a mortgage and commenting on mortgage policies is obviously a conflict of interest but I daresay most politicians do have mortgages (or did if it’s been paid off) .
Being a landlord & commenting on lack of housing stock is more problematic .
Now do all the other political parties leaders. If you don’t want to appear biased.
& now do ‘regulatory capture’ (in general) & specifically of the telecom industry – if conflict of interests really concerns you.