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Tag: housing crisis Canada

  • One Percent Down Payment Program Helps Immigrants Achieve Homeownership in Manitoba

    One Percent Down Payment Program Helps Immigrants Achieve Homeownership in Manitoba

    For Nelgun Romero, owning a home in Canada once seemed nearly impossible. After moving from the Philippines to Ontario in 2021, rising housing costs and the increasing cost of living made homeownership feel like a distant dream.

    That changed when Romero discovered an innovative one per cent down payment housing program in Steinbach, Manitoba. By 2025, he and his family had secured a home in the growing Lexington Village community, paying just $4,000 upfront and approximately $11,000 in legal fees, significantly lowering the barrier to entry.

    The program was created by Steinbach-based realtor Waldo Neustaedter, who envisioned a pathway to affordable homeownership after being inspired by a community housing model he encountered in Florida. Partnering with Three Way Builders and Steinbach Credit Union, the initiative officially began construction in 2017.

    Since then, more than 500 homes have been built across Steinbach and nearby Kleefeld, offering modestly sized single-family houses designed for accessibility and future expansion. Homes in the development range from approximately $290,000 to $329,000 and are priced below market value to improve affordability.

    Unlike traditional mortgages, the program allows buyers to bypass costly mortgage insurance requirements. Neustaedter provides financial backing similar to a guarantor, enabling lenders to approve mortgages for buyers with minimal upfront capital, as explained by Steinbach Credit Union CEO Curtis Wennberg.

    The success of the initiative has led to expansion plans in Mitchell, Manitoba, where more than 200 additional homes are planned. Early demand for the new phase has already proven strong, with strict vetting ensuring buyers have stable employment and the ability to meet payment obligations. To date, no participants have defaulted on their loans.

    Housing advocates say programs like this can be especially impactful for newcomers. Emily Schott of Eastman Immigrant Services noted that access to affordable housing remains one of the biggest challenges for immigrants, and initiatives like this provide a rare opportunity to transition from renting to ownership in safe, stable communities.

    However, experts caution that while low down payment programs can improve access, they must be carefully structured to remain sustainable. Carolyn Whitzman of the University of Toronto School of Cities emphasized the importance of long-term affordability measures, such as resale restrictions, to prevent market distortion and ensure continued access for future buyers.

    As housing affordability continues to challenge middle-class Canadians, innovative solutions like Steinbach’s one per cent down payment program are gaining attention as potential models for broader adoption.

  • Immigration Bolstered Canada’s Economy in 2023, But Policy Shift Raises Concerns for Future Growth

    Immigration Bolstered Canada’s Economy in 2023, But Policy Shift Raises Concerns for Future Growth

    A reduction in immigration could hinder Canada’s economic momentum and exacerbate labor shortages, according to economists and business leaders, as the federal government scales back the number of new arrivals.

    Experts credit immigration for helping Canada avoid a recession last year, but the recent decision to lower future admission targets has sparked warnings of economic challenges ahead.

    Immigration Fueled Economic Growth in 2023

    Statistics Canada reported that Canada’s population grew by 1.3 million in 2023, with 97.6% of that increase attributed to immigration. Economists say that the influx of people has been a key driver of GDP growth, helping to offset the economic headwinds from inflation and rising interest rates.

    “If it was not for the population growth we had last year, Canada would have entered a recession by the end of 2023,” said Charles St-Arnaud, chief economist at Alberta Central. “Even though individuals are spending less due to economic pressures, the sheer increase in population kept the economy afloat.”

    New Immigration Targets Reduced to Stabilize Housing and Services

    In November 2023, the federal government announced a plan to admit 500,000 immigrants annually in 2025 and 2026. However, Immigration Minister Marc Miller announced on Thursday a significant reduction in those targets: 395,000 in 2025, 380,000 in 2026, and 365,000 in 2027.

    The policy shift aims to ease pressure on Canada’s strained housing market and stabilize public services. “Population growth needs to be managed to avoid exacerbating housing shortages and service bottlenecks,” Miller said.

    Economists Warn of GDP Decline and Labor Shortages

    Economists caution that curbing immigration could negatively affect GDP growth. Rebekah Young, an economist at Scotiabank, warned that slower population growth, or even a decline, could shrink GDP by as much as 0.75%.

    “Even a small contraction in GDP will be felt, particularly as businesses across sectors rely on workforce growth to maintain operations,” Young said.

    Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), echoed these concerns, emphasizing that immigration—both permanent and temporary—has been essential for keeping many industries afloat.

    “Our members are struggling to fill vacancies, particularly for roles like night shifts at quick-service restaurants,” Kelly said. “Immigrants have been a lifeline for the Canadian economy, and scaling back these numbers will hurt.”

    Kelly added that raising wages is not always feasible for businesses, especially in the food and retail sectors.

    Businesses Fear Operational Challenges Amid New Immigration Limits

    Business organizations, including the Canadian Chamber of Commerce, have expressed concerns over the economic impact of the new immigration plan. Diana Palmerin-Velasco, senior director for the Future of Work at the Chamber, stressed the importance of immigration to economic and workforce growth.

    “Immigration is critical, particularly as we face an aging population, low fertility rates, and a wave of retirements,” Palmerin-Velasco said.

    Shift in Policy Could Ease Public Sentiment on Immigration

    While business leaders fear the reduction in immigration will hurt the economy, some experts believe the move could help ease negative public attitudes toward immigration.

    Victoria Esses, director of the Network for Economic and Social Trends at Western University, explained that public anxieties about job competition and resource allocation tend to rise during economic slowdowns.

    “A smaller influx of immigrants could reduce some of the negative perceptions we’re seeing right now,” Esses said, noting that economic uncertainty often fuels anti-immigration sentiment.

    Balancing Growth and Public Resources

    The federal government’s decision to lower immigration targets represents an attempt to balance economic growth with the housing crisis and strained public services. However, economists and business leaders caution that scaling back immigration may come at the cost of slower GDP growth and intensified labor shortages.

    As Canada navigates these changes, policymakers will need to carefully manage the trade-offs between stabilizing the economy and addressing public concerns over immigration.

    Source : Swifteradio.com

  • Canada to Raise Minimum Wage for Temporary Foreign Workers in High-Wage Stream

    Canada to Raise Minimum Wage for Temporary Foreign Workers in High-Wage Stream

    OTTAWA – The Canadian government is set to increase the minimum hourly wage required for temporary foreign workers in the high-wage stream of the Temporary Foreign Worker (TFW) program. The adjustment, effective November 8, aims to encourage employers to prioritize hiring Canadian workers.

    Currently, under the high-wage Labour Market Impact Assessment (LMIA) stream, employers must pay at least the median wage of their province to qualify for hiring foreign workers. However, according to an unnamed government official, Employment Minister Randy Boissonnault will announce on Tuesday that the new wage threshold will rise to 20% above the provincial median hourly wage.

    In Ontario, for example, where the median hourly wage stands at $28.39, employers will soon be required to offer at least $34.07 per hour to hire foreign workers under this program.

    A Shift Towards Prioritizing Domestic Workforce

    The federal government’s objective with these wage adjustments is to reduce reliance on temporary foreign labor and encourage businesses to increase recruitment of Canadian workers. This move follows criticism directed at the Liberal government for expanding the number of temporary residents in Canada, which some argue has exacerbated housing shortages and driven up living costs.

    The TFW program has also faced scrutiny over alleged mistreatment of foreign workers.

    Employers hiring foreign workers through the LMIA stream must demonstrate that they could not find suitable Canadian candidates for the position. The upcoming wage increase will apply to 34,000 workers under the high-wage stream, according to government estimates. While current work permits will remain unaffected, renewals will be subject to the new wage rules.

    Surge in Temporary Foreign Workers Amid Tightening Rules

    Public data from Immigration, Refugees and Citizenship Canada (IRCC) shows that 183,820 temporary foreign worker permits were issued in 2023, a sharp increase from 98,025 permits in 2019, reflecting an 88% rise over four years.

    The upcoming change follows other efforts to limit the number of temporary residents, including restrictions on the percentage of low-wage foreign workers in certain sectors and eliminating permits in metropolitan regions with high unemployment. However, the new wage rules will not impact workers in agriculture, who have traditionally been exempt from similar changes.

    This policy shift signals the government’s continued efforts to balance economic needs with labor market protections while addressing concerns about the growing reliance on temporary workers.

     

    Source : The Canadian Press

  • Former B.C. Premier Christy Clark Expresses Interest in Replacing Trudeau Amid Liberal Caucus Unrest

    Former B.C. Premier Christy Clark Expresses Interest in Replacing Trudeau Amid Liberal Caucus Unrest

    As Prime Minister Justin Trudeau faces internal pressure from Liberal MPs calling for his resignation, former British Columbia premier Christy Clark has hinted at a possible return to federal politics, signaling interest in leading the Liberal Party if Trudeau steps down.

    In a statement to Radio-Canada, Clark expressed her willingness to engage in discussions about Canada’s future and the direction of the Liberal Party. “I would like to be part of the discussion about the future direction of the Liberal Party and the country,” said Clark, 58, who served as B.C.’s premier from 2011 to 2017.

    Clark Criticizes Divisive Politics, Offers Vision for Leadership

    Clark’s statement emphasized the need for political unity, lamenting the rise of fear-driven and divisive strategies in modern politics. “Canadians are tired of politicians who think fear mongering and divisiveness will win an election and gain power,” she said. Clark stressed that polarized views hinder the solutions needed to address Canada’s pressing challenges, including the cost of living, housing shortages, healthcare reform, and climate action.

    Reflecting on her personal motivations, Clark added, “Because our country and its future are important to me, I have never closed the door to the possibility of one day returning to political life.” However, she acknowledged that the Liberal leadership position is not expected to be vacant anytime soon.

    Clark’s Growing Presence and Trudeau’s Leadership Challenges

    Clark’s remarks come as Trudeau prepares for a critical meeting with Liberal MPs on Wednesday, where some members are reportedly being asked to pledge their support for his resignation. This internal discord follows a series of challenges for the prime minister, including tensions within the caucus and recent electoral setbacks.

    Over the past two years, Clark has been increasingly vocal about her belief that Trudeau’s leadership is a liability for the party. In March 2022, she told the Curse of Politics podcast, “Justin Trudeau is tired and complacent. I don’t think Trudeau is an asset to the Liberals—I think he’s a gift to Poilievre,” referring to Conservative leader Pierre Poilievre.

    Clark further criticized Trudeau’s handling of national unity, accusing him of deepening divisions between Quebec and Western Canada. She stressed the need for leaders who can bridge regional gaps, warning that Trudeau’s political approach may hurt the Liberals in future elections.

    Following a shocking byelection loss in Toronto-St. Paul’s this June, Clark urged Liberal MPs to privately assess the party’s prospects under Trudeau’s leadership. “I think the leader needs to be replaced,” she told The Globe and Mail. “It’s time for him to move on to other, fairer pastures.”

    Clark’s Efforts to Bolster French Proficiency

    Sources close to Clark revealed that she has been taking French lessons for several months, a strategic move to prepare for federal leadership. She has also visited Quebec’s Cégep de Jonquière twice, with plans for additional trips to improve her language skills.

    With her growing involvement in national conversations and proactive steps to position herself as a potential leader, Clark’s return to politics could signal a new chapter for the Liberal Party. Whether Trudeau steps down remains to be seen, but Clark’s comments reflect growing momentum for change within the party.

    Source : The Canadian Press