If Canadian voters and politicians agree on one thing, it’s that home ownership is slipping out of reach for more and more families.
The biggest housing initiative in the federal budget was bold, but narrow: the government plans to pay for — and take ownership of — up to five per cent of the price of a home for first-time buyers . Taking an ownership stake is certainly bold, but there’s less to this new incentive than meets the eye, because it’s subject to a thicket of limitations and eligibility criteria.
Under these stress tests, families must now prove they can afford interest rates two percentage points higher than what they actually negotiate with a lender. And these rules apply not just to people with low down payments and insured mortgages, but even to those who have saved for a big down payment, and don’t need mortgage insurance.
The rationale for the stress tests is badly flawed. Housing economist Will Dunning has noted that they protect against a farfetched scenario, by assuming that interest rates will rise two per cent by the time a fixed rate mortgage is due for renewal … but that home owners’ incomes won’t rise at all. Any party that wants to offer a serious plan for home owners, needs to start by making the stress tests much more balanced.
The Conservatives have rightly identified increasing housing supply as their top priority. In Greater Toronto, builders started only half as many ground-related housing units in 2016 as in 2002. Reversing that trend is the best way to make housing more available and affordable.
fpcomment Hahahaha. What a load of hogwash
fpcomment CONservatives are the biggest corporate socialist party for the rich. The Corporate socialist Conservatives want to use taxpayer money to enrich realtors, mortgage brokers and bankers. The Corporate socialist CONservatives dont care about taxpayers money.
fpcomment Irresponsible journalism
fpcomment The houses market is going back to normal prices. Hope you didn’t buy into the bubble.
fpcomment National post is such a joke lately, even for a corporate tabloid
fpcomment Who wrote this, a bunch of realtors? fakenews
fpcomment Your newspaper is a vehicle for banks and realtors
fpcomment The beginning was promising: 'Yet six months before a federal election, no party has offered a really bold, comprehensive plan to turn the home ownership trend around' That's exatly what needed but solution is curbing speculation/investment activity. The rest of the article is BS
fpcomment None or few of these wannabes understand the housing crisis first hand. But everyone's getting the wake up call. Libs.fumbled phase I as too limited, parsimonious, overkill, complex and constrictive.. Scheer can learn and gain from this major fumble.
fpcomment Blame the real estate board and all this foreign investment. Housing should be priority for the citizens of this country not greedy investors and landlords. I agree with heavy taxes on property that is not main residence and heavy on those who buy and sell.
fpcomment Did VanRE realtors pay for this article
fpcomment Can't happen. The driving market force was the Boomer generation. That's pretty much over. Boomers are retired, don't need to buy much any more. Selling their homes, or staying in them and renting out rooms to other less fortunate Boomers.The market was driven by the huge numbers
fpcomment Get the government and the CMHC out of the market. Let the banks make the rules and sssume the risk in stead of the Canadian taxpayer. Let Supply & demand serve the market.
fpcomment Ottawa's stress test is demolishing Canadians' housing nightmares. Which party will restore them?
fpcomment 6 months until the election. It will be a full court press by the post media establishment. Big push for oil barrens.
fpcomment The stress test is not the problem here.....severe income inequality is. Fix that & see what will happen.....instead of trying everything else but!!!
fpcomment No, only greedy speculators that drive up housing cost based on speculation
fpcomment So, it's working?
fpcomment Canadian housing dreams were already demolished with crazy prices. Now people have to wait for prices to come down. The Canadian government should permanently ban all foreign real estate investment, and add speculation tax if you sell a second property in less than a year.
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