This is a very quick look at the new federal budget housing measures. Initially it seems a little like smoke and mirrors. Shared equity mortgages have never been popular, and banks may have hesitation about lending when in fact CMHC has a $40,000 lien on the property. As for the RRSP angle: The first-time buyers that it aims at simply don’t have a lot of money in RRSPs. If they could afford that, they would buy a home instead.
This is an election year, so monies are spent on goodies that help win votes. By leaving the stress test in place and failing to do enough to stimulate the economy while piling on debt, the Liberals have guaranteed the Canadian housing market will remain in a deep freeze for a long while.