Due to the wealth of info to sift through with regards to both parties platforms it’s likely I’ll be making brief remarks with regards to questions and thoughts I have on each point with no guarantees of the heavy analysis in which I typically like to partake.
A couple things strike me with regards to the interest free down payment proposal. Beyond the remarks already made at the proposal’s first announcement back in the throne speech, concerns lie with the adverse impacts that may occur on the housing supply.
While it is honourable to attempt to provide more affordable down payments loans to those who couldn’t otherwise afford them, it does raise the question of what impacts it’ll have. Is it possible that by affording loans to people who could not otherwise afford them you increase the number of buyers overall on the market? What happens when there is an increase in demand and continually limited supply? Does it drive prices up?
Is it possible that this policy could have the adverse unintended affect of driving prices higher which would subsequently penalize all new buyers and would it possibly be a better course of action to use money allocated for interest free down payments to instead offer greater incentives for the creation of further housing stock?
While this may not be a vote getter and would have less short term impact, would it have better overall affects for the long term viability and affordability of our housing market?