Finance Minister Chrystia Freeland boasted about the federal Liberals’ housing accomplishments in front of a new apartment building in Etobicoke where single bedrooms are going for $2,500 a month.
“There are apartments that are still available for people to rent. They exist in part thanks to the $73 million dollar investment the federal government made through the apartment construction loan program,” she said.
The Minister was making her housing announcement with local Liberal MP, James Maloney, who issued full support for the Finance Minister, despite rumours that Prime Minister Justin Trudeau will soon fire her. Standing with the two politicians was Kelly Wilson, the vice president of Development Concert Properties.
Shortly after Freeland’s press conference, Conservative MP Melissa Lantsman pointed out the absurdity of a housing flex while telling Canadians, who on average earn $60,000/year, to spend half of their pre-taxed income on rent.
“The apartment building they are in front of is more expensive than the average Toronto rent,” Lantsman said. “Average for a one bedroom is $2,444. This one is listed for $2,565. 2-bedroom average is $3,199. This one is listed at $3,300.”
Canada has the second most unaffordable housing in the world, as per data from the OECD, which tracks housing prices amongst developed nations across the globe.
“We know that one of the biggest hurdles for home ownership for younger Canadians is qualifying for a mortgage,” Freeland said.
She further noted that interest rates were lowered two weeks ago, which she said would make getting a mortgage easier for first time home buyers. She also touted the Liberals’ new policy that allows lenders to offer 30-year amortizations on insured mortgages to first-time homebuyers purchasing new builds. The 5-year extension kicks in August 1, and allows for lower monthly mortgage payments.
A recent Fraser Institute analysis claims that Canadians currently spend more in taxes than they do on clothing, food, housing, and other essentials put together, and a family earning $107,000 now has to pay $47,000 in taxes.
