. New Canadians are arriving in our great country with big dreams: to live securely, prosper, raise and educate a family and grow roots here, which includes owning their own piece of Canada. The idea of renting for life does not appeal to either group.
OSFI introduced the “stress test” in January, 2018, which requires that home buyers who apply for a new federally insured mortgage be able to make their payments if interest rates rose two percentage points above the rate they would qualify for with their lending institution. Someone said recently that “household debt is the new sheriff in town” and we support those charged with ensuring the stability of the financial system. At the same time, we expect them to monitor these new regulations for effectiveness, and to ensure they are not hurting the very economy they are trying to protect.
Government could also create incentives to reduce debt. Why not allow Canadians to choose between paying down their first mortgage by the same amount they would save for an RRSP and receive the same tax treatment? Given the choice between volatile stock markets and the guaranteed return of debt reduction, the choice is obvious. In our research, we tested specific ideas, including a dedicated tax-free savings account for first-time home buyers and increased tax credits for related expenses.
globebusiness The is remarkable. Trudeau officials are bragging about allowing 4X MORE elderly foreigners to come to Canada as permanent residents, immediately gaining access to gold-plated welfare & healthcare, without ever paying in. Shameless.