10 November 2021

To nobody’s surprise, housing affordability emerged as a defining issue for many voters in Canada’s recent federal election. I’ve heard growing concerns from would-be and existing homeowners alike who worry about the sustainability of escalating sale prices. The truth is, we are critically close to a tipping point. Not dissimilar to the rhetoric around global warming, we must acknowledge that (policy) change moves slowly… so we’ve got to start now if we’re going to avert a major crisis. If you’re a first-time home buyer, you’re likely already feeling the heat.

I would be remiss not to preface this breakdown with this disclaimer: the Liberal Party’s Housing Plan is just that – a plan. While we may not see every promise come to fruition (because that’s just politics), they’ve put together a comprehensive plan that considers both short term steps in the right direction, and longer-term solutions designed to benefit future generations.

Buzzworthy commitments include curbing unproductive foreign ownership, converting empty office spaces into housing, and reducing incentives for speculation and house flipping. The real talk of the town is undoubtedly the creation of a new Home Buyer’s Bill of Rights, which would include a ban on blind bidding and the establishment of the legal right to a home inspection. Shaking up the way the buying process plays out is certain to change the game, and hopefully level the playing field.

One of my personal favourites is the introduction of a Multigenerational Home Renovation Tax Credit, which would allow families to claim a tax credit towards adding a secondary unit to their home for the purposes of allowing an immediate or extended family member to live with them. Another is the plan to double the First Time Home Buyers Tax Credit from $5,000 to $10,000 (because let’s get real – closing costs are a bummer!), and a $4 billion dollar “Housing Accelerator Fund” to reward municipalities that grow housing supply faster than their historical average and encourage transit-oriented development.

It’s a big to-do list, and we won’t feel the impacts of these measures overnight. However, irrespective of political affiliation, I’m of the opinion that we as Canadians should be optimistic about the future.

Learn more about the Liberal Housing Plan here and reach out for a chat about how it might affect your potential plans or current investments!