In Canada’s major housing markets, the future for first-time homebuyers looks bleak. Cities such as Toronto and Vancouver are among the most expensive in the world. Others, such as Montreal, aren’t exactly a cakewalk to break into either.
While any help for first-time buyers is generally well received, there have been questions about just how effective the plan will be. “You have to pay the whole thing back at one time,” said Rob McLister, founder of RateSpy.com. “Since most people don’t have tens of thousands of dollars lying around, that’ll let the government ride their ‘winnings’ for longer.”
It is for this reason that some see the program as ineffective, considering the astronomical home prices in some Canadian markets. The Toronto Real Estate Board reported a Greater Toronto benchmark price of $810,900 in October, with the City of Toronto coming in at $897,200.
This is only an issue in Vancouver and Toronto, in most cities housing is affordable.
Affordability only comes be increasing supply or reducing demand. Basic economics. Best way to increase supply is to put in an immediate punitive vacancy tax and use those funds to help those who need it.