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Housing itself is contributing to this increasing division between rich and poor Evan Siddall

“This glorification of homeownership is this odd North American thing that’s counterproductive economically and socially,” he said. “If you are an owner versus a renter, (society) neglect(s) you,” Siddall added.

“You are 75 times more likely to have severe food-insecurity issues if you are renter versus an owner. Part of that is because you have less income. That’s why you’re renting. But it is also because housing itself is contributing to this increasing division between rich and poor.”

And yet here we are again, on the verge of a new round of incentives that could offset some of that good work.

The Conservatives and the New Democratic Party both promised to increase the maximum amortization period for first-time homebuyers to 30 years from 25, which would lower monthly payments, but saddle borrowers with more debt.

Finance Minister Bill Morneau used his pre-election budget to increase the amount that first-time buyers can pull from their RRSPs for a downpayment. He also introduced a shared-equity scheme that allows some first-time buyers to work with CMHC as a co-investor, which at least allows individuals and families who insist on chasing runaway home prices to do so without exceeding reasonable debt loads. At the start of the campaign, Trudeau said he would adjust the program so more people from the most expensive cities could qualify.

Siddall is untroubled by the original co-investment plan. He said on Twitter this week that CMHC had committed about $40 million to 2,000 applicants so far. In the interview, Siddall said he reckons the program’s inflationary effects will add only about $114 to the price of a home. He characterized it as a reasonable political response to the minority of creditworthy borrowers blocked by the stress test.