In The News: Scheer Promises to Make it Easier for Canadians to Buy Property
Could this be the help we need?
- The stress test was put in place by the Liberal government in an attempt to cool down markets such as Vancouver and Toronto. Unfortunately in cooling down those markets, it almost froze Edmonton.
- The stress test makes future homebuyers qualify with their lender at a higher interest rate than they would actually be paying, for the purpose of ensuring they would be able to afford payments if the interest rates were to rise.
- Andrew Scheer of the Conservative Party is making campaign promises on three things:
- To ease the stress test on new buyers;
- To allow first-time homebuyers to take out 30-year mortgages in order to lower monthly payments (which was initially available, but was lowered by the Conservative government prior to Trudeaus government taking power);
- And remove the stress test all together on refinancing.
- This is a contrast to the current governments version of help, the First-Time Home Buyers Incentive (FTHBI), which claims to help first-time homebuyers by investing in their properties if they can pay the initial 10% downpayment. You can read more about this incentive here.
- The Liberals FTHBI program is not the help we need-- but lowering the stress test could be. What Scheer is proposing will lower the monthly costs by extending the amortization, as well as make it easier to qualify for homes in this downmarket with an eased stress test. The icing on the cake is that families would no longer be trapped with the lenders who they initially qualified with, with the removal of the stress test on refinancing.
- We are really looking forward to seeing what the NDP and Green Parties have to offer in terms of Real Estate promises, and plan to keep you up to date.