The Election & The Effects on Real Estate

The affordability of housing is a long-standing issue that has pushed It's way forward in recent months because of the impact of the pandemic which has seen house prices across the country spike as interest rates have remained low.

According to research by Scotiabank published in May, Canada has the lowest number of housing units per 1,000 residents of any other G7 country, a number that has been steadily falling since 2016. To have avoided this situation Canada would have needed to create 100,000 units a year since 2016, but that did not happen. Scotiabank says that while the situation is bad compared to other G7 countries, it is actually worse than it looks at present. Immigration, the bank said, pushes up the need for housing in Canada and for the past 18 months immigration has been below normal.

The issue is at its core one of supply failing to meet demand. The solution to this problem is to build more housing and each of the political parties has put forward a plan that they say will be able to meet demand not just for housing, but for affordable housing across the country.

Written by: Peter Zimonjic, CBC News

The Liberals introduced a 10-year, $40-billion National Housing Strategy in 2017 to build 100,000 affordable housing units and cut homelessness. The spring budget included $2.5 billion to create 35,000 affordable housing units.

During the campaign they have promised to build, preserve or repair 1.4 million homes in four years, double the first-time home buyers tax credit from $5,000 to $10,000, and force the Canada Mortgage and Housing Corporation to cut mortgage insurance rates by 25 per cent. Liberals are also promising $1 billion in funding for a rent-to-own program, a Home Buyers’ Bill of Rights to ban blind bidding, and a first home savings account to allow Canadians up to age 40 to save up to $40,000 for their first home and withdraw it tax-free when it’s time to buy. They also want to ban foreign ownership of new homes for the next two years.

Written by: Peter Zimonjic, CBC News

The Conservatives have promised to build one million homes over three years, launch an Indigenous housing strategy and convert 15 per cent of federal government property into housing.

They want to ban foreign investors not living in or moving to Canada from buying homes in Canada for a two-year period. They say they will “encourage a new market” in seven-to-10-year mortgages and tweak the stress test and insurance requirements to help more Canadians qualify for financing.

Written by: Peter Zimonjic, CBC News

The NDP says it will build, renovate, and preserve 1.7 million homes over the next four years and force the Canada Mortgage and Housing Corporation to cut mortgage insurance rates by 25 per cent. The NDP is committed to building 500,000 affordable homes over the next decade and has proposed the creation of 30-year mortgages insured by the Canada Mortgage and Housing Corporation.

The party wants a 20 per cent foreign buyer’s tax on purchases of residential property to foreign corporations and individuals who are not citizens or permanent residents. It’s promising a $5,000 rental subsidy for those struggling to make rent and would also double the first-time home buyers’ tax credit.

Written by: Peter Zimonjic, CBC News

The Bloc is calling for Ottawa to devote one per cent of its annual income to social, community and affordable housing. It wants surplus federal properties to be used for the development of these homes, with money from the national housing strategy to help co-ops buy buildings and convert them into affordable housing.

Written by: Peter Zimonjic, CBC News

The Greens want an “empty home tax” on foreign and corporate residential property owners who leave units vacant and to strengthen regulation of foreign investment in residential real estate. The Greens promise to allocate one per cent of GST to housing and other municipal infrastructure to provide a consistent baseline of funding.

Written by: Peter Zimonjic, CBC News

The People’s Party platform makes no mention of housing.

Exquisite custom built home in the heart of Crescent Beach. Approximately 4,500 Sq. Ft. detached home & Approximately 9,000 Sq Ft. lot size. This home is only four years old, and will be coming to the market soon. 

Contact our team for more information!