Average resale price nationally is up 15.6% versus 2020 and 33% higher than July 2019. So it is not a surprise that housing affordability, especially in big cities, became the main topic in this coming election. Having Liberal releasing their housing plan today, we have now all the parties’ platforms addressing the issue. Reading their programs, investors should debate how these promises will change supply and demand balance through affordable building and more stimulus favors respectively.
Conservatives
- Aim to have one million homes built across the country in the next three years
- Ban foreign investors not living in or moving to Canada from buying homes for a two-year period, encourage foreign investment in affordable purpose-built rental housing
- Encourage new market in seven-to-10-year mortgages to “provide stability” for first-time homebuyers and lenders
- Will not tax Canadians’ capital gains on the sale of their principal residence
- Adjust mortgage stress test to “stop discriminating” against small business owners, contractors and other non-permanent employees, including casual workers
Liberals
- Introducing new tax-free savings account for first-time home buyers, a $1-billion program to increase rent-to-own projects
- 25% cut in premium rates on CMHC mortgage insurance.
- promise to ban blind bidding on homes, require the disclosure of recent sale prices and impose an anti-flipping tax that would require owners to hold a property for at least 12 months before reselling it.
- Propose ban on foreign ownership of new houses for the next two years.
NDP
- Introduce 30-year terms on mortgages insured by Canada Mortgage and Housing Corporation
- Pledging 500,000 “quality, affordable” housing units within 10 years
- 20 per cent tax on homes purchased by foreign buyers
- Waive federal portion of GST/HST on construction of new affordable rental units
- Double homebuyer’s tax credit to $1,500
Sources: « BNN.com » and « The Globe & Mail »
