policy
06. policy
(ALMOST) ALL QUIET ON THE POLICY FRONT
New housing policy took a backseat to more organic market evolutions in Q2 2019. The provincial government hit pause on the introduction of any new demand-suppressing policies after implementing numerous ones in 2018. The most notable policy-related issue was CMHC releasing details of its shared
home equity plan for first-time buyers, which won’t take effect until September 2019. While it may have an impact on specific market segments, it is unlikely to have tangible effects on the Metro Vancouver market on a broad scale.
GOVERNMENT OF CANADA FIRST-TIME HOME BUYER INCENTIVE The intention of the First-Time Home Buyer Incentive is to help qualified first-time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens. Buyers must have the minimum down
The incentive can be repaid: at any time without penalty; when the property is sold; or at the end of 25 years. The repayment is based on the property’s fair market value at the time of repayment, with the government sharing in the upside and downside of a property’s value. While the scope for this policy’s effectiveness may be greater in markets with lower average prices than in Metro Vancouver, some impact could be felt within less-expensive sub-markets of the region within the multi-family space.
payment to be eligible, and can then apply for a 5% (for an existing home) or 10% (for a new home) shared equity mortgage with the Government of Canada. A purchaser’s maximum qualifying income cannot exceed $120,000, with the total amount borrowed not exceeding 4 times the qualifying income.
44
rennie.com
Made with FlippingBook - professional solution for displaying marketing and sales documents online