Housing affordability is a complex social issue that can’t be solved by a single solution. If a simple fix would suffice, then we could simply look to the major centres across the U.S., Europe and Asia that have long struggled with housing affordability and apply established best practices in Canada.

To make meaningful progress, multiple solutions are required. The private, public and not-for-profit sectors must all work together to find these solutions.

A lack of affordable housing affects segments within our communities differently. For example, young families, seniors, students and the unhoused all experience this crisis uniquely.

For many aspiring homeowners, the biggest hurdle isn’t the monthly mortgage payment — it’s saving for a down payment, especially in expensive cities like Vancouver and Toronto.

This is a real issue for so many professionals who perform critical services in our communities. Think about first responders, teachers, tradespeople and the like.

Last year, the federal government made some positive changes in this regard by increasing the $1 million cap for insured mortgages to $1.5 million to better reflect today’s housing prices and help Canadians qualify for a mortgage with a down payment of less than 20 per cent.

Other measures from governments at different levels have been helpful as well, particularly policy changes aimed at increasing supply and fast-tracking approval processes.

Still, with rental prices what they are, the prospect of saving $75,000, $150,000 or more for a down payment is just not possible for many. What if there was a solution that paired government policy and private investment as a means to help people clear that final hurdle?

The Greater Vancouver Realtors, the professional association representing more than 15,000 real estate pros across the region, has been working on a concept that we believe, if implemented, could be a helpful policy tool. We have named the concept the Canadian home ownership community bond.

A community bond is a social funding tool that allows individuals or organizations to invest in projects that benefit society. Given our housing affordability struggles, there is an opportunity to develop a community bond program on a national scale that targets the issue.

1. Investors: Canadian residents or corporations could invest in the housing bond using additional tax deferral room that the federal government provides.
2. Investment management: Funds would be managed by a large, trusted entity such as the CMHC or a federally regulated bank.
3.  Homebuyer support: The accumulated bond investments would act as “collective equity” to reduce the down payment required for qualifying buyers. The program would lower risks for lenders and make home ownership more accessible to residents.
4. Social impact: Investors would receive a modest return while contributing to a program designed to help more Canadians achieve home ownership.

Under this proposal, 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.

We all have an interest in healthy, vibrant and affordable communities. Home ownership ensures that people are financially invested in the long-term health and stability of their neighbourhoods.

Canada has embraced social investing programs on a national scale before. During the First World War, the federal government issued Victory Bonds to fund the war effort. These were later sold under the name of Canada Savings Bonds until 2017.

Thankfully, we don’t face the dire circumstances today that the Great War presented. Canada’s housing affordability problem is an entirely different issue, but it’s a societal challenge that could inspire socially minded investment.

This proposal isn’t a one-size-fits-all solution but it would offer one more policy tool that we could deploy in our effort to make home ownership attainable for more Canadians.

We plan to engage with policy-makers and the business community throughout the coming year to discuss and refine this concept. Follow us on social media or visit gvrealtors.ca to stay informed about these conversations.