Lauren van den Berg, President and CEO of the association, told CMT that while the program represents “a step toward alleviating housing affordability pressures,” it doesn’t fully tackle the country’s need for increased construction capacity to keep up with population growth.

“It’s a step in the right direction toward boosting supply, but it doesn’t address the urgent need for our country to enhance construction capacity to meet the housing demands of our growing population,” van den Berg said.

She also highlighted how this program creates new opportunities for brokers, encouraging them to adapt to the needs of clients seeking to refinance their mortgages for these projects.

“For brokers, this is an opportunity to build new relationships and generate business,” she added. “Homeowners will likely need to refinance their mortgages to access their home equity for these projects, and that’s where there could be opportunities for the mortgage industry.”

Van den Berg noted that brokers will need to stay on top of the new mortgage insurance reforms and secondary suite loan program, as helping first-time refinancers navigate the rules could make the advisory process more challenging.

Lack of specifics leaves brokers with questions

At the same time, some brokers are raising concerns about the lack of details from the federal government on the plan.

In a fiery post on X (formerly Twitter), mortgage broker Ron Butler of Butler Mortgage criticized the lack of technical details in the government’s announcement. He also took aim at the federal government for relying on what he described as “amateur construction” to address the housing crisis.

“Obviously we have to wait for the details, but the necessary control mechanisms would have to be so complex,” Butler said in his post. “Why would the Canadian Government participate in a scheme to do amateur construction?”

Tracy Valko, owner and chief visionary officer of Valko Financial, cautioned against seeing the program as a cure-all for Canada’s housing crisis.

“Is this program a great tool to have for us? Absolutely, and it will help some people,” Valko told CMT. “But let’s put a couple of things in perspective. This isn’t building new homes or helping someone buy an actual house. This is adding a rental. It’s not helping homebuyers buy homes.”

Valko also raised concerns about whether the federal government had properly consulted the industry before rolling out the program.

“I don’t know if they’re consulting enough with the lenders and the insurers,” she said. “I think it’s frustrating, because you want to be able to post it out there and talk about it on social media. At the end of the day, it’s really hard when you don’t have all the details of what it will be.”

“Hopefully, in the next few months, there will be some clarity on this,” she added.

Opening doors for borrowers and lenders

Leigh Graham, mortgage broker and co-owner at The Mortgage Professionals in Kingston, ON, pointed out that another challenge for brokers will be waiting for lenders and insurers to gain access to the program.

“A program like this always has to go through multiple stages before it’s ultimately available to a broker and a consumer,” says Graham. “That simply takes time. If all of that can happen by January 15, then that would be incredible. However, personally, I think that’s a big ask.”

However, Graham believes the program still represents a positive step in addressing the housing crisis.

“I think this program shows that the government is prepared to take action to solve the housing challenge using what powers they have,” he said. “So, in the long run, I believe it’s a good thing. And once we get lenders and insurers on board, I believe this will create more borrowing and lending opportunities in the brokerage sector.”