The Federal Budget was announced this week, and you’ve probably heard a lot of buzz about the numbers, changes and promises that came out of that. Many parts of the budget pertain specifically to real estate and housing, and if you want the rundown, here it is:
- Investing in date on foreign homebuyers: the government pledged $500,000 to Statistics Canada to develop methods of gathering data on purchases of Canadian properties by foreign buyers. This has been a big issue the past year in Canada.
First, they are staking their mark on a largely regional problem. Second, it’s sending a signal to provincial and municipal governments that they’re willing to work together. [Money Sense]
- $30 million, spent over two years, to maintain rent-geared-to-income for those relying on social housing
- $111.8 million for homeless initiatives
- $444.4 million over five years to enable the Canada Revenue Agency to crack down on tax evasion and tax avoidance
- Stricter rules for mortgage applications is expected to follow suit with the introduction of this budget.
What does it mean for main street home buyers? It means that with increased regulation and responsibility, banks will have increased costs and risks and they’ll pass this cost onto you, the consumer. So, even though mortgage rates remain historically low, gone are the days of rock-bottom rates. (For more on this read how the recently introduced 10% down payment rule impacted the market.) [Money Sense]
Full information on the federal budget for 2016, can be found online on the Government of Canada website.
