What the Liberal Win Means for Homebuyers
Monday’s federal election in Canada was a historic one, with a very high voter turnout and a change—a majority Liberal government now sits in power. Since the results, there’s been a media storm of conflicting ideas about what this all really means.
While most Canadians still struggle with paying too much in taxes, trying to maximize savings while making sound financial decisions, the new Liberal majority government will have real impact on the nation’s real estate market. [Money Sense]
So what are some of the ways the Liberal win can be beneficial for homebuyers? Here’s a few points to consider:
- Housing affordability: the Liberals want to analyze what is either helping or hurting housing affordability in major metropolitan centres in Canada, like Calgary, Toronto and Vancouver.
- First-time homebuyers: while little concrete details have been releasd at this time, the Liberals have made promises to help out first-time homebuyers in Canada. Industry experts are predicting this might mean looser borrowing policies or longer amortization rates, but again, the details of what this looks like haven’t yet been released.
- Higher interest rates: economists are also predicting an uptick in interest rates, to help cool overheated markets in some cities across Canada. When government financially supports the economy, higher inflation and higher interest rates usually ensue. However, today the Bank of Canada announced that the overnight rate would remain the same. Again. My thoughts on the rate announcement today can be found on my blog here.
- Changes to Home Buyers’ Plan: the Liberals have promised to open up access to the Home Buyers’ Plan, giving homebuyers more access to money for a down payment. While the Liberals don’t plan to increase the current limit of $25,000, they do plan to loosen the qualification rules to allow Canadians affected by sudden and significant life changes to access their RRSPs for down payment funds. This change would help out more than just first-time homebuyers as well.
Do you have questions about any of the items listed above? Or about purchasing a home? Please feel free to contact me!
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