Canada just announced billions in new measures to correct the housing issues it created. Last night the Government of Canada (GoC) released its latest budget, including billions in spending on new housing stimulus. BMO provided a list of the recent changes, noting they’ll have a limited impact, given most of the measures are demand stimulus. […]
lenders will be able to offer 30-year amortizations on mortgages to first-time buyers when purchasing new construction. This is primarily a policy to preserve prices by helping first-time buyer budgets rise to absorb stagnant inventory, preventing the need for developers/investors to cut prices on the units
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“In general though, this is a measure that stokes demand at a time of excess demand, and ultimately does little to improve affordability once prices adjust,” he explains.
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