Election results means more tax for foreign buyers, little change on mortgages

Economist says first-time buyer program could provide short-term relief but lead to higher prices

Aerial view of houses in Oshawa, Ont., seen from a Canadian forces Hercules on Saturday, Nov. 11, 2017. The federal election results mean potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised. (THE CANADIAN PRESS/Lars Hagberg)

The re-election of Justin Trudeau’s Liberals on Monday will likely result in potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised.

Liberal promises on housing included some expansion of its first-time buyers assistance program, and a one per cent tax on vacant homes owned by non-Canadians.

John Pasalis, president of the Toronto-based firm Realosophy Realty Inc., says the Liberal minority victory means there won’t be the more aggressive stimulus promised by the Conservatives to relax mortgage rules that would have led to higher home prices.

Brian DePratto, senior economist at TD Bank, says the Liberal platform provides little relief for housing affordability, though he notes the limited tools to address supply at the federal level.

He says the higher price cap in major cities for the Liberal’s first-time buyer program, which gives a loan for 10 per cent of the property’s value, could provide short-term relief to buyers but lead to higher prices.

Phil Soper, president of Royal LePage, says the government will need to concentrate more on increasing supply, including by reduced regulatory cost and faster approvals.

The Canadian Press

READ MORE: ELECTION 2019 — How would the major parties address Canada’s housing crisis?

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Ponoka Police Advisory Committee information night sees good turnout

Information night was held Jan. 20 in town council chambers

2019 Ponoka Festival of Trees meets $100,000 goal

Ponoka hospital will begin purchasing heart monitoring cubes

Supporting a friend with mental health issues

AHS: Do you have a friend who just doesn’t seem to be their usual self?

PHOTOS: Ponoka Curling Club hosts Alberta Junior Curling Tour Event

The Ponoka Curling Club hosted its first-ever Alberta Junior Curling Tour Event… Continue reading

Jeffery Kraft of Ponoka remembered for being loving, well-liked

Kraft passed away on Dec. 15, 2019, in Lacombe at 20 years old

VIDEO: As 106 reported dead from the coronavirus outbreak, countries look to evacuate citizens

Canada is warning its residents to not go to Hubei province at all

Pregnant B.C. woman stuck in Wuhan, the epicentre of coronavirus outbreak

Woman is due to give birth in Wuhan, China unless she can get out

Majority of Canadian boards had no female members in 2016 and 2017: StatCan

Statistics Canada says 18.1 per cent of director seats were held by women in 2017

Alberta premier wants feds to approve Teck mine for benefit of First Nations

Kenney: ‘Surely [reconciliation] means saying yes to economic development for First Nations people’

VAUGHAN: Childhood heroes like Kobe are supposed to be immortal

Kobe Bryant tragically passed away in a helicopter crash that claimed the lives of nine people

VIDEO: Music stars pay tribute to Kobe Bryant at Grammys award show

Music artists including Billy Ray Cyrus, Rick Ross and Kirk Franklin paid tribute to Bryant

VIDEO: Alberta man hopes billboard will find him a kidney donor

Jim Lomond has a rare disorder that causes inflammation and damages his kidney tissues

Canada’s basketball community mourns Kobe Bryant after helicopter crash

Bryant was an 18-time NBA all-star who won five championships

Most Read