Low-income Canadians will soon help their more affluent neighbours buy homes. Why?
The new federal budget keeps our silly obsession with homeownership alive.
The program is certainly not cheap — the plan to subsidize home purchases is budgeted to cost $1.25 billion over three years. And it means renters will be paying taxes to help their more affluent neighbours buy houses or condos.
It will also increase demand — and thus prices — and encourage more people to buy into what looks like a potentially volatile market.
The First-Time Home Buyer Incentive is based on the belief that the chance to have a stable, affordable place to live requires a taxpayer-subsidized plunge into the home ownership lottery. (With the biggest benefits for developers of new housing.)
It’s an approach based on a housing model that is no longer working in much of the country. MORE