Quote:
Originally Posted by GullFoss
Not sure a lot of people would take government up on the offer of taking equity in their homes. All it does is serve to increase the max price of home they can buy...at a cost.
If government kicks in 10% of new build cost and you make $80k per year, it takes your max home price from ~$400k to ~$440k. Is that meaningful? To take advantage:
1) you have to be interested in a new build
2) you still end up having to pay maintenance fees and property taxes on $440k of home even though you only own $400k of house
3) if you do a renovation project before you sell, you end up subsidizing the government
What's the difference between a $400k and $440k home? For a new condo in Calgary, the difference is 650 sqft vs 710 sqft, which feels meaningless. Or it's the cost of a few upgrades. Can't see a huge take up - and even if there is:
1) it won't impact housing prices
2) it won't impact affordability. You'd save $100-$200 on a mortgage payment each month
It's just a solution for which there is no problem
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I think that you raise some very well reasoned points. But saving $100-$200 on a mortgage payment each month can mean the difference between affordability and non affordability for a lot of people.