Election results means more tax for foreign buyers, little change on mortgages

Economist says first-time buyer program could provide short-term relief but lead to higher prices

Aerial view of houses in Oshawa, Ont., seen from a Canadian forces Hercules on Saturday, Nov. 11, 2017. The federal election results mean potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised. (THE CANADIAN PRESS/Lars Hagberg)

The re-election of Justin Trudeau’s Liberals on Monday will likely result in potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised.

Liberal promises on housing included some expansion of its first-time buyers assistance program, and a one per cent tax on vacant homes owned by non-Canadians.

John Pasalis, president of the Toronto-based firm Realosophy Realty Inc., says the Liberal minority victory means there won’t be the more aggressive stimulus promised by the Conservatives to relax mortgage rules that would have led to higher home prices.

Brian DePratto, senior economist at TD Bank, says the Liberal platform provides little relief for housing affordability, though he notes the limited tools to address supply at the federal level.

He says the higher price cap in major cities for the Liberal’s first-time buyer program, which gives a loan for 10 per cent of the property’s value, could provide short-term relief to buyers but lead to higher prices.

Phil Soper, president of Royal LePage, says the government will need to concentrate more on increasing supply, including by reduced regulatory cost and faster approvals.

The Canadian Press

READ MORE: ELECTION 2019 — How would the major parties address Canada’s housing crisis?

Like us on Facebook and follow us on Twitter

Just Posted

Histories of our treasured Christmas traditions

Why we do what we do during the festive season

The best caesar in Canada can be found in Sylvan Lake

Kjeryn Dakin’s Tragically Hips caesar won the national Best Caesar in Town competition

Stettler Festival of Lights brings in a net profit of more than $103,000

“I am always overwhelmed by the generosity of this town and surrounding areas.”

New labour and delivery suites ahead for Stettler

Moms and newborns to benefit from equipment and renovations

Alberta RCMP prepares for National Impaired Driving Enforcement Day and shares safety tips

National Impaired Driving Enforcement Day is a nationwide RCMP initiative taking place Dec.7th

‘Kind of lacking:’ Injured Bronco wonders why Canada won’t fund spinal surgery

“I think if Canada can step in and advance this program”

PODCAST: The Expert welcomes AA Lacombe General Jared Williams

Lacombe resident joined Red Deer Advocate Sports Reporter Byron Hackett and Host Todd Vaughan

No reports yet of Canadians affected by New Zealand volcano eruption, feds say

Missing and injured included tourists from the U.S., China, Australia, Britain and Malaysia

Online ‘direct threats’ lead to cancellation of school dance in Blackfalds

Threats resulted from Grade 4 social studies class discussing energy sector

Blackfalds RCMP warn of poor driving conditions on QEII

Vehicles have been involved in collisions and are in the ditch

Would you leave your baby alone to go to the gym? This Canadian dad did

The man identifies just as a divorced dad with a nine-month-old baby

Lawyer competence includes knowledge of Indigenous-Crown history: B.C. law society

All practising lawyers in B.C. will be required to take a six-hour online course covering these areas

Wealth of Canadians divided along racial lines, says report on income inequality

One interesting finding was that racialized men have a higher employment rate than non-racialized men

Conservatives urge Morneau to deliver ‘urgent’ fall economic update

Morneau says the first thing the Liberals plan to do is bring in their promised tax cut for the middle class

Most Read