Housing affordability is a complex challenge in our country that requires multiple solutions. No single policy change or initiative will be enough to address the issue on its own. Instead, meaningful progress will require collaboration across the private, public and non-profit sectors. 

At the Greater Vancouver Realtors (GVR), we believe that leadership within the real estate profession has a responsibility to contribute to solutions that help make home ownership more attainable for Canadians. 

That is why we’re proposing a new concept: the Canadian Home Ownership Community Bond. The concept is designed to help address one of the biggest barriers to homeownership—saving for a down payment—by leveraging private investment and government policy to provide a structured mechanism to help aspiring home buyers get into the market. 

The down payment challenge 

For many Canadians, particularly in expensive markets like Vancouver and Toronto, the final hurdle to home ownership is not affording the monthly mortgage payment, but saving the substantial down payment required to qualify for a mortgage. 

While government initiatives, such as increasing the insured mortgage cap to $1.5-million in 2024 and various recent actions aimed at increasing supply, have been positive steps, the reality remains that accumulating $75,000, $150,000, or more upfront is simply not possible for many working professionals when they are already paying significant rental costs. 

This is especially concerning when it affects the very people who keep our communities strong—first responders, teachers, healthcare workers and tradespeople to name a few. If these professionals cannot afford to live where they work, the overall health of our communities suffer. 

A concept for industry-wide collaboration 

The Canadian Home Ownership Community Bond program is an idea we believe has the potential to complement existing housing policies and ease the down payment burden on qualified buyers. Here’s how it could work: 

1. Investors – Canadian residents and corporations could invest in the bond, using additional tax deferral room granted by the federal government for this purpose.
2. Investment management – Funds would be managed by a trusted entity, such as the Canada Mortgage and Housing Corporation or a federally regulated bank. 
3. Homebuyer support – The accumulated investments would act as “collective equity,” reducing the down payment required for qualifying buyers, lowering risks for lenders, and increasing homeownership access. 
4. Social and financial impact – Investors would receive a return while supporting a program designed to help more Canadians buy homes. 

Under this concept, lenders would be able to draw from the bond in the unlikely event that a buyer goes into default. I say unlikely because history shows that Canadians pay their mortgages. Mortgage delinquencies in Canada are historically around 0.2 per cent and slightly below that in B.C. This track record should inspire confidence for the program’s underwriters. 

Partnering with the real estate industry 

While we at GVR are spearheading this discussion, we recognize that no single organization can tackle this challenge alone. That is why we are reaching out to our colleagues across the industry—including brokerages, developers, mortgage professionals, lenders and policy advocates—to refine and strengthen this concept. 

We all share the goal of making housing in our communities more affordable and attainable. By working together, we can develop innovative solutions that balance market realities with the need for greater accessibility to home ownership. 

Join the conversation 

As we continue to engage policymakers and industry leaders to advance this concept, we invite you to be part of the conversation. We want to work with as many partners as possible to explore the viability of this concept and other solutions that can make a real impact. 

Share your thoughts in the comments below—email us if you want to be involved.

Let’s come together as an industry to help shape the future of housing affordability in Canada.