Housing Policy
Summary
In Canada, shelter unaffordability is severely affecting mental health, physical well-being, and overall quality of life. Despite this pressing issue, the government has indicated no resolution on the horizon.
The Moderate Party of Canada believes human needs, such as shelter, should not be treated as commodities or investments. When the focus is on profitability rather than meeting basic needs, it fails to serve the interests of Canadians. Affluent individuals and organizations have an unfair advantage, burdening everyday Canadians with the task of competing against each other and wealthier entities for affordable housing.
The Moderate Party of Canada is committed to addressing this growing pressing issue of reducing housing prices with a strategic action plan to decommodify residential real estate and restrict residential property ownership to Canadian citizens and Permanent Residents only.
How the Moderate Party of Canada Will Take Action:
Click the following links to read more.
The Situation
Shelter is a basic human need. Every Canadian is required to pay for housing in order to survive and maintain a normal quality of life. Unfortunately, corporations and wealthy individuals, enabled by the government, exploit this basic need by taking advantage of lenient real estate laws, poor enforcement of ownership regulations, and low interest rates. Housing, also known as residential real estate, is treated as an investment vehicle, commodity, and profit-driven asset, which has dramatically increased the cost of living in Canada. [1]
As a result, Canadian life milestones are delayed. Financial security and the desire to have children is stifled by the housing crisis. Discretionary income is reduced, limiting Canadians’ support for the local economy or starting businesses. Furthermore, the crisis has negatively impacted mental health and general well-being. By contributing to the already high cost of living, housing prices have increased food insecurity and homelessness. Economically speaking, housing is a non-productive asset.
The Solution
Shelter is a fundamental human need, and therefore, profiting from residential real estate ownership should not be allowed. Housing as a profitable venture will be prohibited and non-Canadians will be banned from purchasing residential properties. Additionally, appropriate tax measures will be implemented to prevent wealthy Canadians from purchasing more housing than necessary. As a result of lowering housing costs, the benefits will be extensive and include a more productive society, enhanced well-being and mental health, increased safety and security, stability, a population boost, and a stronger local economy. For this reason the Moderate Party of Canada will ensure all Canadians can afford suitable housing.
Detailed Policy
Your Right To An Affordable Home
Decommodify Residential Real Estate
The Moderate Party of Canada believes that housing is a fundamental human need and advocates prioritizing humans over profit. In order to decommodify housing, entities that do not have a genuine human need for housing will be restricted as residential real estate ownership will be limited to Canadian citizens and Permanent Residents only.
Ban Corporations and Foreign Nationals from Purchasing Housing
Limiting residential real estate ownership profitability is essential in creating a more affordable and sustainable housing market. The Moderate Party of Canada’s proposed approach is to prohibit corporations and foreign nationals from purchasing Canadian residential real estate. This is with no exceptions allowed as their primary objective is profit.
Corporations and foreign nationals who already own residential real estate may retain their properties, and are free to build housing. However a land value and vacancy tax will be implemented shortly after taking office. This tax will apply exclusively to residential real estate owned by corporations and foreign nationals.
The tax will commence at a reasonable rate, increasing monthly with no upper limit. The escalating tax rate will incentivize corporations and foreign nationals to sell or relinquish their residential real estate holdings.This structure will provide adequate time to adjust their businesses and sell their properties, which can only be sold to Canadian citizens and Permanent Residents. This policy change will deliver long-term benefits to the Canadian housing market, making it more accessible and affordable for everyone.
Limit Permanent Resident Housing Ownership & Introduce a Vacancy Tax
Permanent Residents are permitted to own a maximum of two residential real estate properties. A vacancy tax will be levied if a Permanent Resident is not residing in their primary residence or if their secondary residence remains unoccupied.
Discourage Canadian Real Estate Hoarding With a Land Value Tax
Canadians have the freedom to own as many houses as necessary. However, if owning more than two residential properties, a land value tax will be applied. The more properties owned, the higher the tax will be. This increased tax will apply equally to all properties except for the primary and secondary residences. Despite the tax, the freedom of property ownership remains an important right for Canadians.
Build Housing Through the Canadian Mortgage and Housing Corporation (CMHC)
As a result of decommodified housing lowering the residential real estate value, the Moderate Party of Canada will utilize the Canadian Mortgage and Housing Corporation (CMHC), a crown corporation, to construct additional housing to meet the growing demands.
Allow Fixed Mortgage Interest Rates to be Locked in for Decades
In the United States and most of Europe, mortgage rates can be locked in for several decades. While long-term mortgages are available in Canada, they are typically locked in for only 3 or 5 years and amortized over the life of the mortgage. The Moderate Party of Canada proposes allowing mortgage rates to be locked in for the entire duration of the mortgage. This policy change aims to reduce the commodification of housing, making it more accessible and stable for everyone.
Reduce Overall Immigration
Rapid population increase raises the demand for housing, resulting in less supply. Demand for housing can be reduced by limiting immigration, which will lower the costs and increase the affordability of housing [2]. See our immigration policy.