After what felt like a long campaign season, the 2021 Canadian Federal Election is now over. The Liberals formed another minority government, and the rest of Parliament looks very similar. Many people are asking ‘Why did we have to do that?’
Honestly, this election was inconvenient in many ways. But, this election was very important in gauging what Canadians think is most important in the coming years. While obviously Covid-19 was the main issue being discussed, the surprisingly close runner-up was housing. All parties made housing a major part of their campaign, realizing that this was truly a key issue for voters.
This blog isn’t about rehashing 2021 Canadian Federal Election campaign platforms, or endorsing one party or platform. This blog is about offering perspective on what all of it matters to you, the potential homebuyer.
The Impact on New Homebuyers
We discussed whether now is a good time to buy a few weeks ago, and I’ll remind you what I said then: the best time to buy is five years ago. If you’re sitting back waiting for the perfect time to jump into the market for the first time, you’re missing out every day you don’t act. The GTA housing market is hot. Any policies promised on the campaign trail to help cool it down by adding supply won’t come into effect (or have an effect) immediately.
What are more likely to happen sooner are policies affecting accessibility to the housing market. In fact, this was a key part of the Liberal campaign platform. What shone through very clearly in the Liberal campaign literature on housing is that there’s a very keen understanding that young-ish Canadians are one of the biggest demographic segments. And that they’re losing patience being held out of the housing market.
So, if you’re in the 21-35 age segment, the parties really wanted your vote. And they let you know with their housing policies which focused as much as affordability and access as building new supply. In the Liberal platform, there were outlines for new financial mechanisms to help you save for that down payment faster. Also, to ensure you pay less on that down payment, reduce closing costs on your first home, and even an ambitious rent-to-own program.
The Bottom Line
What’s most important is that – in the coming months and years – efforts will be made to make it easier for you to buy a home. Will these things fix the housing market as a whole? That remains to be seen. But, what I can guarantee is that they’ll have an impact on your personal bottom line.
These types of perks are a sign of a time where promoting housing sales is a good way to stimulate the economy. If it means helping you do it faster and easier by lowering your costs through subsidies and tax breaks, THAT is as close to your ‘perfect moment’ as you’re going to find in the highly competitive GTA housing market. The prices are not going to come down – especially not if measures are coming in to make access easier.
Want to know more about how some of these policies and programs might help you get your first home? Let’s chat!