As I’m sure that you are aware the Liberals were voted in once again. With a less than stellar track record over the past decade one can only hope that a change in leader will lead to some actual change in policy that will help homeowners and prospective homeowners out, from an affordability stance.
At this point it is too early to tell however, all we can do is cross our fingers and hope for the best.
One of the election promises was to remove GST on the purchase of new homes under $1 million in value for first-time home buyers. This would have the effect of increasing affordability for first-time homebuyers.
Increasing affordability, primarily for first-time homebuyers was another election promise. The government is talking about a support package of $25 billion to help accelerate home building by offering subsidized financing to builders and cities as well as charitable groups with the goal of accelerating the number of homes being built. The primary focus will be on the construction of affordable rental properties and other forms of affordable housing.
The government has also signalled a willingness to fund and support the cutting of red tape and invest in infrastructure that will make it easier for municipalities to support faster approval for builders and deal with zoning changes, where required.
With inflation rates still down and overall economic prospects lack lustre, there is still optimism that The Bank of Canada will continue to cut rates, which will help those with variable rate mortgages. This also holds an opportunity for those taking out a mortgage now, so that they can take advantage of future rate decreases.
With politicians shortly heading off for summer vacation and no federal budget before the fall at the earliest, we most likely won’t see many policy changes actually put into effect until 2026.