Thank you, Madam Speaker. Madam Speaker, it is common knowledge that residents in the smaller communities in the Northwest Territories face a difficult situation when attempting to arrange financing from financial institutions for commercial or residential mortgages.
The housing shortage precipitated by drastic federal cutbacks in funding for social housing which my colleague, the Minister responsible for the Northwest Territories Housing Corporation, has been working diligently to get reversed is made worse by the lack of mortgage financing available for people in small communities who can afford to build or buy their own homes.
I am pleased to inform the House that the Department of Economic Development and Tourism is developing a proposal to establish a mortgage investment corporation to help ease the shortage of commercial and residential...
---Applause
...mortgage financing in small communities.
A number of Members of this House have been briefed on this concept last fall and their positive response to the initial proposal was encouraging.
Madam Speaker, a mortgage investment corporation could provide home and commercial financing for residents in smaller communities in the Northwest Territories using equity capital from various sources.
For example, with initial investments totalling $40 million the corporation, using this equity as leverage, could attract up to $250 million additional investment dollars, five times the original investment.
Emphasis would be placed on small investors from a cross-section of the Northwest Territories population, but a mortgage investment corporation would be able to attract investments from other areas in Canada and attract possible future investment from southern Canada.
A mortgage investment corporation can raise funds at attractive rates from the public, and the investors can be protected through Canadian deposit insurance. Mortgages issued can be eligible for insurance by the Canada Mortgage and Housing Corporation provided they meet the requirements.
Madam Speaker, a corporation of this nature could play a significant role in helping alleviate the housing shortage in the Northwest Territories. Thank you.
---Applause