Another election has come and gone for Canada and with it, a precarious outcome. A Liberal minority, though considered strong by most experts, will need the support of other parties in order to enact its agenda.
Experts point to the Liberal/NDP combined majority as the likely avenue going forward considering the parties align on many issues. With some provincial and municipal policies at play in certain provinces and cities, there are a number of things home-buyers can expect from government policy decisions. Recent policy changes on the provincial and municipal levels across the country have seen a number of issues addressed and seen the housing bubbles of Toronto and Vancouver cool. There are other issues however which need to be addressed, such as, foreign-owned homes left empty for long periods, affordable rental housing availability and first-time home buyers struggling to take the leap. Possible outcomes from the minority government are varied. The Liberals have the most seats, so one of the first orders of business on housing will probably be their promise to increase the qualifying purchase price for the recently launched First-Time Home Buyer Incentive to almost $800,000 in cities like Vancouver and Toronto. In order to get votes on this, the NDP may try to push for their policy of reintroducing 30-year amortization periods on insured mortgages for first-time buyers. They have another bargaining chip however in their promise to double the Home Buyers' Tax Credit to $1,500. The NDP also promised more purpose-built affordable rental housing, which will include their pledge of an additional $5 billion fund to build 500,000 affordable units over 10 years. Above that, the parties seem to align on a foreign home-owners tax of a form to be later determined. In addition to policies directly affecting home-buying, the Liberal’s and NDP aim to improve finances for students. With one aiming to eliminate interest on loans and another promising a larger portion in grants and extending time to repay, it’s possible a combination could start making life a lot more affordable for young people. With a number of ideas from all parties on how to tackle this important issue, only time will tell how Canada’s housing situation will fare.
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Cecil Darren Frank - Toronto Real Estate AgentArchives
October 2019
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