Political Promises About Housing – Justin Trudeau

Trudeau pledged, if the Liberals are re-elected, of course, to expand the First Time Home Buyers Incentive (FTHBI), implemented September 2nd, to cover home values of up to $789,000, replacing the current cap of $480,000 in the hot housing markets of the Greater Toronto, Vancouver and Victoria.

The proposed expansion of the program does not apply to areas outside of those three markets.

Reference: https://globalnews.ca/news/5893892/trudeau-liberals-first-time-homebuyers-program-expansion-campaign-promise

Political Promises About Housing – Andrew Scheer

The Federal election is underway, and Canadians are once again hearing political promises from candidates. On the housing front, Conservative Leader Andrew Scheer says he will make it cheaper for Canadians to buy homes by allowing first-time home buyers to take out 30-year mortgages to help lower monthly payments.

He also promised to ease what’s known as the stress test on mortgages and remove it altogether from mortgage renewals. “For millions of Canadians their home is the largest investment they will ever make,” Scheer said.

Reference: https://globalnews.ca/news/5939018/andrew-scheer-mortgages-housing

First Time Home Buyer’s Incentive (FTHBI)

On September 2nd the Liberal introduced an incentive to help first-time homebuyers. The First Time Home Buyer’s Incentive (FTHBI) will reduce their monthly mortgage carrying costs without adding to their financial burden.

Eligible first-time home buyers can apply to finance 5 per cent or 10 per cent through a shared equity mortgage of their home purchase with the Government of Canada. The Incentive is not interest bearing and does not require ongoing repayments.   

Some of the criteria to qualify for this incentive are:

• an insured mortgage;
• a minimum down payment to be eligible;
• a maximum qualifying income is no more than $120,000;
• and a borrowing limit of up to 4 times the qualifying income.

Find out more at https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive

Greater Victoria Neighbourhoods – Highlands

The Highlands encompass much of the unparalleled beauty of the west coast forest and seaside. Avid hikers will love Gowlland Todd Provincial Park’s 25 kilometers of trails, spectacular views and natural flora and fauna across the east side of Saanich Inlet.

This natural area is rich in biodiversity and it protects dry coastal Douglas fir, grassy meadows, alders and old-growth forest. It’s also a wetland area protecting species of rare plants and animals. Hikers will especially enjoy spring and summer when small rivers and waterfalls feed the verdant green and rocky knolls break out in splendid arrays of wildflowers.

The serene Todd Inlet is a favourite place for boaters wanting calm, sheltered anchorage. The abundant marine life also attracts scuba divers from around the world.

The pace is slower and more relaxed here. When you purchase a home in the Highlands, you will enjoy a peaceful stillness surrounded by west coast forests.

Proposed Increase to First-Time Home Buyer Incentive

The Liberal proposal to raise the value of homes that qualify for the First-Time Home Buyer Incentive to $789,000 from $505,000 may nudge up demand, but houses in Toronto, Vancouver and Victoria are too expensive for most families to take advantage, said Sal Gualtieri, a senior economist at BMO Capital Markets.

However, if you are a First-time buyer on the hunt for a condominiums or townhouse, you may find the program useful. I can help you utilize the program should you decide to employ it.

Reference: https://edmontonjournal.com/news/canada/many-canadians-would-be-left-out-of-liberal-home-buyer-proposals-experts/wcm/aa054c95-a1da-40dd-ab94-b28e4278f45f

BC’s Tax on Speculation – Quick Report

The province reported foreign owners and satellite families have paid $58 million in the 2018 calendar year and $57 million from the first quarter of 2019. As of Sept. 3, 11,783 homeowners in B.C. are paying the tax. This includes 4,621 foreign owners, 3,060 satellite families, 1,519 Canadians living outside of B.C., 2,362 B.C. residents and 221 others, such as properties held through corporations and trusts.

“It is in fact targeting speculators, people living outside of B.C.”, said Finance Minister Carol James, adding that 99.8 per cent of British Columbians are exempt from paying the tax.

However, an estimated 17,000 people still have not completed their declarations.

Read more: https://www.theglobeandmail.com/canada/british-columbia/article-bc-speculation-and-vacancy-tax-brings-in-58-million-for-2018

Impacts of Speculation Tax

“We are being forced to leave because B.C. Finance Minister Carole James has decreed that we are foreign “speculators” who don’t deserve to be here. It feels like she has withdrawn the Canadian welcome invitation extended to us 14 years ago.” Retired person living in Minneapolis who formerly had a part-time home in James Bay.

This is becoming a common lament of long-time, part-time Victorians who don’t live in Victoria full time and who are not set up to rent out their home away from home. Read the full story in Times Colonist: https://www.timescolonist.com/opinion/letters/comment-goodbye-victoria-speculation-tax-is-forcing-us-to-leave-1.23946820

Is the speculation tax doing what it’s supposed to, or is it doing more harm than good? Let me know what you think.