Prime Minister Justin Trudeau has promised an array of new measures that aim to help Canadians purchase homes amid the still-hot housing market.
During a campaign stop in Hamilton, Trudeau described the current Canadian real estate market as suffering from “instability” and “uncertainty.”
His party’s plan includes billions of dollars in funding to discourage “flipping” homes, blocking foreign home purchases for four years and new rules surrounding exploitative real estate agents.
For example, the Liberal party proposes to double the First Time Home Buyers’ tax credit from $5,000 to $10,000. Trudeau also proposes slashing mortgage insurance rates by 25 percent, amounting to savings of $6,100. Further, the Liberals propose a “rent-to-own” program that aims to “create a pathway for renters in five years or less” towards home ownership.
On the housing supply side, Trudeau said that his government will “build, preserve or repair 1.4 million homes in the next four years” by giving cities “new tools to speed up housing construction.” The Prime Minister went on to say that he will offer cities a $4 billion pool of cash that can be used to create “middle-class homes.”
Other parts of the plan include a Home Buyers Bill of Rights that bans “blind bidding” in an effort make the process of purchasing a home more visible, a legal right to home inspection and “total price transparency” regarding the history of recent house sales prices.
Finally, the Liberal party says that it plans to expand its tax on vacant housing related to non-resident and non-Canadians to include foreign-owned vacant land in large urban areas.
Moreover, Trudeau promised to implement an “anti-flipping tax” on residential houses that requires owners to own the property for at least 12 months or be taxed heavily.