Federal government set to shake up down payments – report


The federal government might increase down payments on investment properties or restrict sources of funding for such purchases to moderate speculation in already overheated markets.

In a letter to the Financial Post, the Ministry of Housing and Diversity and Inclusion, in partnership with the Canada Mortgage and Housing Corporation, said that speculative investing is stoking overbidding, over-borrowing, and overheated home price growth.

“That’s why our government is looking at every tool at our disposal to tackle these challenges head on. That includes the Fairness in Real Estate Action Plan,” the ministry said. “By developing policies to curb excessive profits in investment properties, protecting small independent landlords and Canadian families, and reviewing the down payment requirements for investment properties, we are targeting the issues the market is facing from multiple angles.”


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *