Will the new government drive house prices up or down?

How will the new Liberal government policies affect rates and house prices in Canada?

And just what does ‘affordability’ mean in this context?

“Here’s some of what the mortgage market can expect from Mr. Trudeau’s new government:

Higher bond yields: Balancing the budget is not a priority for the Liberals until 2019. Trudeau is expected to go on a spending spree and bond traders aren’t keen about it. It suggests a greater supply of government debt and potentially higher long-term yields to come. That, of course, could mean at least slightly higher fixed mortgage rates than we’d otherwise see.

A More Hawkish Poloz: The odds just dropped for a cut in prime rate. More spending by Ottawa puts less pressure on governor Stephen Poloz to stimulate the economy with rate cuts. The implied probability of a rate hike by next October has almost doubled, from 8% yesterday to 15% as we speak.

Wider RRSP Access: The Liberals say they’ll open access to the RRSP Home Buyer’s Plan, particularly for homebuyers coping with significant life changes (divorce, death of a spouse, a sick or elderly family member, etc.). More access to down payment funds will prop up housing sales and home ownership slightly, and support home prices.

More “Affordability”: The Liberal platform includes a review of housing policy in high-priced markets. The new government will “consider all policy tools that could keep home ownership within reach.” What that means, we’ll have to wait and see. It could definitely be positive for renters and income property investors, given the Liberals have promised to “direct CMHC…to provide financing to support the construction” of new rental housing.

First-timer Support: Trudeau’s government will add more flexible programs for first-time homebuyers. This could mean any number of things, potentially even higher amortization limits for new buyers.
New Blood at the DoF: The Liberals will be installing a new Minister of Finance, who has enormous power over housing regulation. Will he or she be as hands-off on mortgage policy as the outgoing Joe Oliver? We’re guessing not. We’ll likely have an answer by the time the Liberals release their first budget next spring.”

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tedeastside
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realist
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realist

@74 BPOM

I regret I cannot upvote you because of the remedy of capital punishment. The Canadian government’s administration of justice is too faulty to have that much confidence in it. Moreover, firing squad is a quick and painless death, after which the criminal is forever free of trouble…unlike the rest of us who have to deal with their misdeeds.

May I instead propose confiscation of all assets in Canada and abroad, several years of hard labor, then deportation?

StupidityCheck
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StupidityCheck

@73, No.

Best place on meth
Member
Best place on meth

Vote up if you would like to see immigration fraud punishable by firing squad.

This would apply to the immigrant or the consultant.

We’ve got plenty of bullets.

Shut It Down Already
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Shut It Down Already

Are leasehold properties fairly valued (at today’s interest rates)? A 2 bedroom condo near Granville Island is still $600K+

Egg Hunt
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Egg Hunt

> #66

He probably has transferred his assets to paper-divorced wife,
cousins and grand parents’ friends’ names long ago.

Vanco
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Vanco

Only that’s still 1.4 M for each house, which may be out of the bears reach.

OK, 70% drop to 650K for westside SFH.

Vanco
Guest
Vanco

OK, I will play along.

Yes, we all know why the Vancouver real estate exploded, HAM!

Liberals will crack down on those scoundrels and confiscate their homes and passport.

This will put extra SFH on sale. Plus, with their expansion policy, the interest rate will drop and will bankrupt all the fools who bought early. There will be a 50% crash in Vancouver market which will become a buyer’s market.

Egg Hunt
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Egg Hunt

A quick Google search by “Canada” “Fake passport” or “False refugee claims” found many unbelievable stories….

GreenSalad
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GreenSalad

@Patriotz

They won’t have to. The media show JT for free, so he doesn’t have to pay anyone to do it.

…..to the point of being nauseating. I change the channel as fast as I can now…..remote control is on high alert.

paulb
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patriotz
Member

@63: “Crime surely pays in Canada, make 10 million through fraudulent schemes and pay 900k in fines, looks like this guy learned some lessons from our banks.”

There’s more to it than that. He was also convicted of income tax evasion:

Along with six counts under the Criminal Code and the Immigration and Refugee Protection Act, Wang has pleaded guilty to two counts under the Income Tax Act, including failing to report $2,722,305 of taxable income from 2007 to 2012.

That gives CRA a green light to go after any assets he has.

Oracle
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Oracle

And regarding OAS, many people overseas continue to collect without any oversight. Many collecting simply don’t exist and others collecting have long been dead.

Gong show if there ever was one.

space889
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space889

@patriotz – So why aren’t these 1200 people having their citizenship revoke given that they most likely knew that they are performing a fraud.

As well, why Cdn citizenship be for life when you have hundreds of thousands of people who came here for no other purpose than to get an insurance policy and then return to their true home country to continue practice things like sharia laws, terrorists activities, denying women rights, cultural killings, etc and/or aim to bring those practices here under the guise of tolerance? They never want to be Canadians in the first place, they don’t contribute, and I don’tsee why they should be citizns simply because they went through 3 years of immigrant jail, or got lucky to be born here.

left already
Guest
left already

@57
…A Richmond, B.C., man who made millions helping hundreds of people file fraudulent immigration applications was sentenced to seven years in prison and fined more than $900,000 in provincial court today. Business records showed up to 1,200 people paid $10 million for Wang’s services…

Crime surely pays in Canada, make 10 million through fraudulent schemes and pay 900k in fines, looks like this guy learned some lessons from our banks.
How about confiscating all his illegal business proceeds, revoke his citizenship together with all 1200 others who knowingly used his services and send him back to china to do his prison time, that will be what good old canadians would call “justice done”. Unfortunately those days are gone, welcome to Kanada!

Shut It Down Already
Guest
Shut It Down Already

Language proficiency has changed recently when it comes to citizenship eligibility. Stop moaning unless you’re wanting to kick out those who entered Canada under different criteria.

patriotz
Member

@60:

Wrong. The policy of the Liberals (and NDP) is the same as Canada has always had up to this year, that citizenship can be revoked if it was obtained through false pretenses, but not as a punishment for some later offense.

space889
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space889

@BPOM – Canadians have resoundingly said that’s not the citizenship policy they want. No stripping away of citizenship ever. If they wanted that they would have voted for the Cons.

yellowfever
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yellowfever

@1 I liked Harper’s plan better. Helps pump up the bubble faster.

Best place on meth
Member
Best place on meth

#57

This should Justins first order of business, stripping this guy of his citizenship as well as the 1200 scammers he helped and deporting the whole lot back to their shithole of origin.

Also, ban them from ever entering this country again.