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Mortgage Broker News | 25 Jul 2016, 08:15 AM Agree 0
In response to the housing crisis in Canada’s hottest markets, policy revisions on the federal level should focus on more fundamental solutions such as supply-side changes, says Joe Oliver
  • Savio V. | 25 Jul 2016, 09:19 AM Agree 0
    This has been going on for a while- in a drive to curb foreign ownership , the Government deprives the average Canadian of homes in their own country . Try buying a home in other countries.
    A recommendation - Canada wants to curb foreign ownership, how about a minimum 50% downpayment required, and qualifying a client at the benchmark rate at 25 years amortization with the relevant GDS/TDS ratios ?- employment verification required (i don't know how they can do this-but find ways of a solution to the verification process)
    How about increasing the amortization for Canadians - like most European countries, so it eases their lifestyles, and they enjoy life more , and afford a home as well- doesn't matter if it take them a while to pay it off- and there are ways to pay it off faster anyways.
    Why not have lawyers take on the onus of verifying foreign ownership- no Canadian passport / citizenship card at signing? higher taxes for foreigners ?
    Why are we making difficult for our own to qualify ?
  • Alister MacLean CCIM | 25 Jul 2016, 12:37 PM Agree 0
    Perhaps the Government could help Canadian buyers afford their first time home by amending the income tax rules - giving the 1st time buyer the option to get tax relief against their income tax, whereby their mortgage payments could to be temporarily tax deductible up to say $2000 per month. Eventually when the buyer chooses to sell the house the government could either recover their tax relief as a capital gains tax on sale or, on the accrued deferred sum of income tax sheltered, which ever is the lower!
    Now if a Buyer does not opt for the Mortgage tax deduction, then obviously no capital gains tax would be calculated as is the present norm.
  • 2D from TO | 26 Jul 2016, 09:41 AM Agree 0
    Why is Joe Oliver talking about make it harder to own for Canadians? When affordability is already so hard. BC has finally taken a step in the right direction with the new land transfer tax, at least this will have these absentee owners pay their share of taxes since we all know they don't earn income and don't pay income tax. Mostly it is the elderly, housewives, and students who actually occupy the McMansions being bought by foreign owners as a way to hedge their money against volatility in their own country.
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