On the subject of housing supply, the association supported proposals from all parties to build more apartments and rededicate unused federal properties. The Liberals’ proposal to introduce a multi-generation tax credit looked promising, the Conservative pledge to build houses alongside transit infrastructure and the NDP pledge to forego GST / HST for affordable rental housing.
“Both the Liberals and the NDP have promised to double the tax credit for first-time home buyers (increasing from $ 5,000 to $ 10,000), which will save the average buyer about $ 1,500 upon completion,” OREA said. The NDP Plan’s determination to rebalance tough mortgage regulations and extend the payback period for CMHC insured mortgages to 30 years lowers the barriers for first-time buyers by allowing smaller monthly mortgage payments.
The association also praised the liberal and NDP support for co-ownership or participation models as a solution to prohibitively high down payment requirements that discourage first-time home buyers. The Liberals’ proposal to cut mortgage insurance rates by 25% would widen the path to home ownership as the average insured mortgage owner would save $ 6,100.
It also nodded to the Conservatives’ suggestion that the mortgage stress test be set up so that it does not discriminate against small business owners, contractors, non-permanent employees and casual workers. OREA said the mortgage stress test and other government restrictions are unfair to millennials looking to enter the market as well as young families looking to move up.
“It is clear that our leaders are paying attention, and this election has brought Canada’s affordability crisis to the fore in the political debate,” said Oikle.