Budget wish list includes buyer incentives
March 17, 2019
Federal Finance Minister Bill Morneau
Federal Finance Minister Bill Morneau will table the 2019 federal budget March 19. The residential real estate and home building industry has a long wish list for this last budget before the next federal election.
Judging from discussions with mortgage lenders, builders and real estate agents, this is what the real estate industry would like to see:
- 30-year amortization on mortgages. This would spread lower monthly payments and allow more buyers with high-ratio loans to qualify for a mortgage.
- Incentive for first-time buyers. This could be a more generous allowance for tax-free withdrawals from registered savings plan under the existing Home Buyers Plan, or some form of direct grant to first buyers.
- An end to the mortgage stress test. This test, that requires all buyers to qualify at higher rates than are readily available, is widely blamed for extending the current housing downturn.
We find out March 19 if these recommendations are included in the federal budget.