Housing and Income Measures
- Dutch-style mortgages with automatic rate reduction
- Unified $18 minimum wage eliminating student differential
- $6,240 annual income increase for minimum wage workers
- Structural incentives for debt reduction and wealth building
The NPA's affordability platform addresses housing costs and income adequacy through structural reforms that create lasting improvements rather than temporary relief. Dutch-style mortgages and minimum wage reform represent complementary approaches to household financial security.
Dutch-Style Mortgage System
| Feature | Advantage |
|---|---|
| Automatic Rate Reduction | Interest rate decreases as principal balance falls |
| No Refinancing Required | Eliminates application fees and credit checks |
| Rewards Repayment | Extra payments produce immediate interest savings |
| Predictable Structure | Decreasing payments support long-term financial planning |
Mechanism
Unlike conventional mortgages that lock interest rates regardless of equity position, Dutch-style mortgages automatically reduce interest charges as borrowers pay down principal. This structure rewards responsible debt reduction without requiring refinancing applications, credit assessments, or legal fees.
Homeowner Benefits
The system creates powerful incentives for accelerated mortgage repayment. Each additional payment toward principal produces immediate interest savings, helping families build equity faster while reducing total borrowing costs over the life of the loan.
Unified $18 Minimum Wage
The NPA proposes increasing Alberta's minimum wage from $15 to $18 per hour while eliminating the student wage differential. This unified approach establishes equal pay for equal work across all workers.
Economic Impact
- Weekly Income: $120 additional earnings at 40 hours per week
- Annual Impact: $6,240 increase from approximately $31,200 to $37,440
- Purchasing Power: Higher wages help families manage rising housing, food, and transportation costs
- Local Economy: Increased consumer spending circulates through Alberta businesses
Combined with fuel tax elimination, these measures provide immediate and sustained affordability improvements for Alberta families at all income levels.