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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Court awards Surrey Costco shopping cart collector $583K after car pins him

Kurtis Ryan Burdeniuk, 22, was retrieving carts when driver backed into him in the parking lot, pinning him

Woman in Fraser Health region confirmed as sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

Committee that replaced Surrey’s Public Safety Committee seven months ago has never met

Surrey mayor dissolved safety committee in July 2019, replaced it with Interim Police Transition Advisory Committee

Extradition case delayed for South Surrey fugitive caught in U.S. after year-long manhunt

Brandon Nathan Teixeira was arrested in California in December

Guildford’s Winter Festival raises nearly $7K for Surrey Memorial Hospital

Funds raised through two weekends of skate rentals, on-site donations

Blair says RCMP have met Wet’suwet’en conditions, calls for end to blockades

The Wet’suwet’en’s hereditary chiefs oppose the Coastal GasLink project

Petition seeks to remove local police department from Lindsay Buziak murder case

American woman starts online petition in hopes of helping Buziak family

Health officials confirm sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

Study says flu vaccine protected most people during unusual influenza season

Test-negative method was pioneered by the BC Centre for Disease Control in 2004

Saskatchewan and B.C. reach championship round at Scotties

British Columbia’s Corryn Brown locked up the last berth in Pool B

‘Chain reaction pile up’ closes southbound traffic on Coquihalla Highway

Black Press Media has reached out to RCMP, paramedics for details

Exploding enrolment prompts opening of second TWU campus in Richmond

Langley’s faith-based Trinity Western University opens a second campus in Richmond

Fraser Valley seniors’ home residents go without meds for a night due to staff shortage

Residents speak out about staff shortages that are leading to serious safety concerns

B.C. lawyer, professor look to piloting a mental-health court

In November, Nova Scotia’s mental-health court program marked 10 years of existence

Most Read

l -->