BILD Lethbridge addresses local housing needs

• Share on Facebook
• Share on Bluesky
• Share on X
• Copy Link

“It has a dramatic effect. People are either staying where they are or people are having to reduce their expectations and maybe not be satisfied with what they actually need or purchase.”

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

She said people looking to buy a home must qualify at the “higher rate of the Bank of Canada five-year benchmark” or “what the Bank is offering plus an additional two per cent”.

“It’s made it very difficult for people to get into the market,” she said.

“What’s interesting is that these are the same people who can pay their rent and rent in Lethbridge is sometimes higher or at least equivalent to a mortgage payment, so these are people who are qualified but are being barred from investing in home ownership.”

FEDERAL HOUSING INITIATIVES

The 2019 budget included initiatives focused on access to the housing market by first-time home buyers and increased supply for both ownership and rental. The four proposals were:

• A new First-Time Home Buyer Incentive for eligible first-time home buyers who have the minimum down payment for an insured mortgage can apply to finance a portion of their home purchase through a shared equity mortgage from CMHC.
• Increasing the Home Buyers’ Plan withdrawal limit from $25,000 to $35,000 for RRSP savings.
• Extending the Rental Construction Financing Initiative with an additional $10 billion in financing over nine years, until 2027–28.
• Inviting communities and other groups to propose initiatives that break down barriers limiting new housing via a new Housing Supply Challenge.

Mearns said that initially, the First-Time Home Buyer Incentive “sounds great that they’re going to basically front some of the costs which will reduce monthly payments”.

“But really it’s problematic. It doesn’t help first-time buyers get into the market, really. The equity position is owed back to the government. It doesn’t help people who have existing mortgages that need to re-mortgage. It doesn’t help people who want to move up and purchase a larger home,” she added.

Mearns said it really doesn’t address the issues caused by the mortgage stress test.

“It was quite a disappointing announcement for us. It completely missed the mark. It’s surprising that they wouldn’t have seen the value of either increasing the amortization to 30 years or addressing the stress test. It would have cost nothing and it would have gotten people back into the market.”

She added that BILD will continue to raise awareness about the issue and make sure local and higher-level politicians are aware of problems around housing in the region and across Canada.

“Housing affordability is a big concern for us as an industry and we want to continue to advocate so that people can get into ownership,” she said.

“Understanding that there’s a large economic impact in this and everyone is talking about economic prosperity and economic growth … this is a place that they have to look at.”