In case anyone still wants to somehow debate whether the Liberals will deliver affordable housing.
“Housing needs to retain its value,” Mr. Trudeau told The Globe and Mail’s City Space podcast. “It’s a huge part of people’s potential for retirement and future nest egg.”
I hear ya, but there’s no side-stepping the fact that families who took out mortgages at the peak prices and peak rates and won’t be able to sell to cover their cost and sinking deeper in debt. In other words affordability after years of neglect becomes challenging. If all the mortgages are erased or re-adjusted to new market state then maybe… however what to do with families that paid 80% mortgage and their house price dips 50%. They paid real money to the real bank who gets to keep the money while family’s deficit from all those extra payments amounts to nothing, esp. if they were targeting it as retirement fund. Thus far I saw no proposals that don’t destroy portion of non-rich population. 🙁 Whoever comes up with solution will deserve Nobel prize.
I haven’t seen any specific data for it but I would believe there a lot more people who don’t own homes then those who are newer owners with limited equity. Out of the long and rather ambiguous list of items the Liberals introduced in the budget for housing the 20 million for StatCan to collect more housing data was probably the highlight for me.
The government let this bubble get so big, they should have to implement a system to determine if familes were forced to over leverage themselves just to own a home and offer a reasonable amount of relief to those families as that home becomes a more reasonable value.