Purrfect Properties Blog

Posts Tagged ‘Mortgages’

Should You Allow the Federal Government to buy into your Home?

Monday, March 25th, 2019

Ottawa Canada

Ottawa Canada


CREDIT: Thank you Ratehub.ca for an excellent penned article… I really could not have explained it better myself.  I echo these concerns and cannot justify allowing the Government to have a bigger piece of our/your equity in properties.  This change has absolutely disenchanted me.  They could have changed the amortization length to 30 years, like it used to be instead of 25 and that would have lowered folks payments, and allowed equity to remain in homes across Canada.

The Minister of finance could have reduced the Stress Test by a few percentage points and that would have had the same boosting effect.  Instead, they want an even larger piece of your pocket, equity and future in your homes.  I can say this, I would not partake in this program for fear of what would happen when I had to leave and the government wanted their cut back, and more – especially when it will be on their terms and dictated expected profits.

Confused about the new mortgage incentive the Liberal government announced Tuesday? Don’t worry, we were too — and we live and breathe this stuff. We’ve been discussing it among our mortgage team all day and have come to the conclusion this policy actually hinders first-time homebuyers who use it because it decreases the maximum purchase price they can qualify for. Let us explain.

But first, some background.

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