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

Pedestrian injured after train collision in Cloverdale

Police say the investigation is in the early stages

Surrey drunk driver gets 32 months in prison for killing grandma, injuring girl

Shavin Reynold Singh, 31, is also prohibited from driving for four years

Surrey filmmaker creates ‘Monster’ movie about gang life in the city

Fleetwood resident Inderveer Sodhi wrote, directed and stars in his coming-of-age fictional drama

Surrey ‘foam-free Vaisakhi’ initiative inspires ‘Sweet Takeaways’ business

KPU students launch business selling sugarcane takeout containers as alternative to foam, single-use items

Driver escaped uninjured as car burst into flames on Nordel Way

It happened at about 7:30 p.m. Tuesday in North Delta, just west of Scott Road

VIDEO: UBC students offered $1,000 to help with leaving Hong Kong

The university said 31 of its students were attending four universities in Hong Kong

‘Actors can play any roles’: Debate over ‘colour-blind’ casting after Victoria lawsuit

Tenyjah Indra McKenna filed a complaint over racially-motivated casting

Infants more vulnerable to measles than previously thought: Canadian study

Babies typically don’t receive the measles vaccine until they are 12 months old

Shatner, Obomsawin among 39 inductees to Order of Canada today

Shatner is being given one of Canada’s highest civilian honours for his 60-year career

VIDEO: One man dead after early morning house fire in Langley

Two other people were sent to hospital with injuries

John Mann, singer and songwriter of group Spirit of the West dead at 57

Mann died peacefully in Vancouver on Wednesday from early onset Alzheimer’s

Teacher tells B.C. Supreme Court that student was ‘happy’ to watch smudging ceremony in classroom

Case being heard in Nanaimo over indigenous cultural practice in Port Alberni classroom

Most Read

l -->