Following up from the previous discussion on positive governmental measures for housing in Canada, we delve into some actions that, while sounding promising, may not be as impactful as anticipated. Let’s explore these measures, which we’ve aptly named “The Good Marketing.”
The Good Marketing
- Measures to Increase Housing Supply 🏠
- Canada Secondary Suite Loan Program: Soon, homeowners may access $40,000 in low-interest loans to add a secondary suite. Sounds helpful, right? However, the amount is modest and details remain vague—raising questions about its efficacy. 🧐
- Changing Mortgage Insurance Rules: The government proposes to increase densification by allowing more units in existing homes, but specifics are yet to be disclosed. 🔄
- For Individuals 🙋♂️🙋♀️
- The Mortgage Charter: Originally announced in November 2023, this repackages existing guidelines from the Financial Consumer Agency of Canada. It reiterates measures like amortization extensions and relief measures that already exist, offering little new help, despite its appealing presentation. 🔄
- 30-Year Amortization for New Builds: This allows buyers of new builds to opt for a 30-year amortization with less than 20% down, enhancing affordability. However, it’s limited to insured mortgages for properties priced under $1 million and primarily benefits builders, not broadening its impact in high-cost markets. 🏗️📉
- Halal Mortgages: Although touted as an initiative, there’s nothing new here; these financial products already exist without additional governmental enhancements. 🔄
- Cracking Down on Mortgage and Real Estate Fraud 🚨
- The government plans to consult the mortgage industry about developing income verification tools through Canada Revenue Agency. However, this is just an intention to consult, and actual implementation could be years away, if it happens at all. ⏳
- Taxing Vacant Land 🏞️
- With no details provided, the government has only mentioned it will consider introducing a tax following consultations later this year. This remains a vague promise for now. 🤷♂️
- Keeping Corporates Out of Individual Housing 🏡
- This sounds appealing in a sound bite but lacks any concrete plans or announcements, making it more of a marketing statement as of now. 🎙️
Stay tuned for Part 3, “The Bad and the Ugly,” where we’ll dissect the less favorable aspects of the housing measures. 👀
