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The Missing Link?

The missing link between home ownership and perpetual renting remains supply.  Either supply of homes to purchase, or supply of money with which to purchase.

The 2019 Federal Budget addresses neither of these supply issues.

  1.  Zero effort on creating additional housing supply.
  2. Zero effort on facilitaing access to money.  On January 1, 2018, the Fed clawed back 40% of purchasing power (mortgage money) from borrowers.
  3. Dollar for dollar there is a useless tweak to the RRSP loan program.
  4. A convoluted ‘shared ownership’ plan that creates more questions than it answers.   Beside which, it is only available if you borrow roughly 80% of what you currently qualify for today, which is closer to 50% of what you qualifed for up until January 1, 2018!
  5. Additional complexities that, once the math is done, actually benefits only 1.00% of the Canadian population.
  6. Already a home owner?  NOTHING in the budget for you.   Access to your home equity remains extremely difficult, more expensive thanks to the Fed.
  7. The only ‘good’ thing about this budget is if you get a divorce, you can requalify as a first time home buyer and buy your spouse out of the existing matrimonial home up to 95% of the value.

Call me with questions but we are still waiting on what the process will be if someone wishes to co-own a home with the Federal Government.

Rae Steil, B.Ed.
Mortgage Planner
Mortgage Architects
Phone:  403-818-7237