Mar 21, 2019
Putting the ‘M’ back into CMHC: New housing incentive plan
Putting the ‘M’ back into CMHC: New housing incentive plan | John Fox - Published in The Lawyer's Daily March 21, 2019
Judging by the reaction, the federal government caught more than a few people by surprise with their new housing incentive plan in Tuesday's budget. That’s the plan that provides a shared equity loan to first-time home buyers. Some people think it’s a great way to get young people into homes, others are warning that it’s going to cause a housing bubble.
There is one consistency in the reaction — no one is calling the
government wimpy or unfocussed. This is not small ball. Putting $1.25
billion into the housing market through shared equity loans is a big deal.
Yes, the ‘M’ of mortgage in CMHC is back in a big way! This is a bold
move. (It’s actually a relief to say something nice about the government. I
have been brooding over SNC-Lavalin for weeks.)
The actual program is not an invention of the government. While shared
equity loans have not been mainstream in Canada, they have formed the
backbone of affordable ownership housing programming for years, not to
mention private non-profits like Options for Homes and Trillium Housing, both of which provide deeper affordability, but that’s another story.
What’s really different here is that the federal government is running this program at scale nationally, and the eligibility criteria — at income of $120,000 — is higher than the former programs.
That’s consistent with their stated aim of helping first-time home buyers, especially young Canadians.
Read full article here The-Lawyers-Daily-Putting-the-'M'-back-into-CMHC-New-housing-incentive-plan-John-Fox-March-21-2019