Housing and the new Liberal Government

 

Now that October 19^th has come and gone the country is now waiting on details of what this newly formed government will mean for Canadians, and as a Realtor, I’m often asked about the effects it will have on the housing market. Here is a look at what I see are the key changes that we could see in the real estate market.

 

Affordable Housing

As part of the Liberal housing policy the residential rental property rebate on GST would be increased to 100%, eliminating all GST on capital investments to affordable rental housing. This rebate is estimated to provide $125 million per year in tax rebates for developers and landlords to build and renovate rental units and will increase access to affordable housing and prioritize residence for seniors. In a market place such as Northumberland where our average rent is approximately $900 a month this could have a great impact on affordable housing for residence of our community.

Changes to Home Buyer’s Plan

Currently the Home Buyer’s Plan (HBP) allows for first-time homebuyers to withdraw up to $25,000 from their RRSP’s to use towards a down payment. The Liberal’s propose changes to the HBP that loosen the program requirements so that a buyer affected by a sudden and significant life changes such as divorce, death of a spouse, an employment move, or even having to move to accommodate an elderly parent would now be eligible. I believe this is going to have a very positive impact on allowing someone experiencing something such as a separation to re-enter the housing market by utilizing their RRSP’s.

First-Time Buyers

Over the past few years there have been a number of mortgage regulation changes that reduced maximum amortization periods, increased minimum downpayments, and tightening lending requirements. The Liberal government has stated they will add more flexible programs for first-time buyers. No specifics have been given to what this might be, so time will tell what specifics measures will be put in place to make home ownership more obtainable for first time buyers.

The changes proposed will have a positive impact for seniors, investors, first-timers, and buyers’ who have undergone a significant life change. The new government looks to have a goal in mind of helping Canadians enter the housing market and creating more opportunities for affordable housing. Overall, it looks like an exciting time in the housing market.

For more information on the local housing market, contact Jacqueline at 905-375-006