Election results means more tax for foreign buyers, little change on mortgages

Economist says first-time buyer program could provide short-term relief but lead to higher prices

Aerial view of houses in Oshawa, Ont., seen from a Canadian forces Hercules on Saturday, Nov. 11, 2017. The federal election results mean potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised. (THE CANADIAN PRESS/Lars Hagberg)

Aerial view of houses in Oshawa, Ont., seen from a Canadian forces Hercules on Saturday, Nov. 11, 2017. The federal election results mean potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised. (THE CANADIAN PRESS/Lars Hagberg)

The re-election of Justin Trudeau’s Liberals on Monday will likely result in potential new barriers for foreign real estate investors as well as some help for first time buyer, but not the more significant changes that opposition parties had promised.

Liberal promises on housing included some expansion of its first-time buyers assistance program, and a one per cent tax on vacant homes owned by non-Canadians.

John Pasalis, president of the Toronto-based firm Realosophy Realty Inc., says the Liberal minority victory means there won’t be the more aggressive stimulus promised by the Conservatives to relax mortgage rules that would have led to higher home prices.

Brian DePratto, senior economist at TD Bank, says the Liberal platform provides little relief for housing affordability, though he notes the limited tools to address supply at the federal level.

He says the higher price cap in major cities for the Liberal’s first-time buyer program, which gives a loan for 10 per cent of the property’s value, could provide short-term relief to buyers but lead to higher prices.

Phil Soper, president of Royal LePage, says the government will need to concentrate more on increasing supply, including by reduced regulatory cost and faster approvals.

The Canadian Press

READ MORE: ELECTION 2019 — How would the major parties address Canada’s housing crisis?

Like us on Facebook and follow us on Twitter

Just Posted

By protesting uninvited in First Nations’ territories, conservationists are acting in a neocolonial or paternalistic manner, says Huu-ay-aht Chief Robert Dennis. Photo by Heather Thomson
A closer look: do Vancouver Island First Nations support the war in the woods?

First Nations/environmentalist old growth alliance uneasy, if it exists at all

Victoria police continue to look for missing man Tyrone Goertzen and are once again asking for the public’s assistance in locating him. (Photo courtesy of VicPD)
Victoria police put out another call for help finding missing man

Tyrone Goertzen, 33, was first reported missing June 4

Rachel Rivera (left) and Claire Ouchi are a dynamic art duo known as the WKNDRS. The two painted the new road mural at Uptown. (Megan Atkins-Baker/News Staff)
Artistic mural at Uptown brings creativity, fun to summer shoppers in Saanich

Road installation the largest of its kind in Greater Victoria

Kathy and Doug LaFortune stand next to the new welcome pole now gracing the front entrance of KELSET Elementary School in North Saanich. LaFortune completed the piece after suffering a stroke with the help of his wife and son Bear. (Wolf Depner/News Staff)
KELSET school in North Saanich unveils welcome pole on National Indigenous Peoples Day

Carver Doug LaFortune completed pole with the help of his son, wife after suffering a stroke

Colwood council is looking at potential summer weekend closures to traffic of a section of Ocean Boulevard at Esquimalt Lagoon, to allow for more of a park-like setting during summer events such as the popular Eats & Beats event, shown here in 2018. (Black Press Media file photo)
Mayor lobbying for summer weekend closures of beachfront Colwood roadway

Rob Martin to bring motion forward to June 28 council meeting

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

A coroner’s inquest will be taking place at the Capitol Theatre in Port Alberni for the next week. (ELENA RARDON / ALBERNI VALLEY NEWS)
Teen B.C. mom who died following police custody recalled as ‘friend to many’

Police sent Jocelyn George to hospital after intoxication had gone ‘beyond the realm’ of normal detox

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

Penticton Indian Band Chief Greg Gabriel speaks to the Sacred Hearts Catholic Church burning down early Monday morning, June 21, 2021. (Monique Tamminga Western News)
Penticton band chief condemns suspicious burning of 2 Catholic churches

Both Catholic church fires are deemed suspicious, says RCMP

COVID-19 daily cases reported to B.C. public health, seven-day moving average to June 17, 2021. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infections drop to 90 on Sunday, 45 Monday

Pandemic spread dwindles as 77% of adults receive vaccine

Emergency vehicles are parked outside of the Wintergreen Apartments on Fourth Avenue. (SUSAN QUINN / Alberni Valley News)
Port Alberni RCMP investigate stabbing on Fourth Avenue

Two men were found with ‘significant’ injuries near Wintergreen Apartments

Bernadette Jordan addresses the media following a swearing in ceremony at Rideau Hall in Ottawa on January 14, 2019. Jordan says the government will provide $2 million to allow First Nations to continue to strengthen the marine safety system across Canada. THE CANADIAN PRESS/Adrian Wyld
First Nations receive federal funds to purchase marine rescue boats

Quatsino, Heiltsuk, and Kitasoo First Nation’s among eight across Canada to receive funding

A blood drive in support of 1-year-old Rielynn Gormley of Agassiz is scheduled for Monday, June 28 at Tzeachten First Nation Community Hall in Chilliwack. Rielynn lives with type 3 von Willebrand disease, which makes it difficult for her to stop bleeding. (Screenshot/Canadian Blood Services)
Upcoming blood drive in honour of Fraser Valley toddler with rare blood condition

The Gormley family has organized a blood drive in Chilliwack on June 28

One Reconciliation Pole and two Welcome Figures were unveiled during a ceremony in honour of truth and reconciliation on National Peoples Indigenous Day at the Vancouver School District in Vancouver, B.C., on Friday, June 21, 2019. THE CANADIAN PRESS/Chad Hipolito
Horgan marks Indigenous Peoples Day by urging recognition of systemic racism

National Indigenous Peoples Day has been marked in Canada since 1996

Most Read