© Reuters. FILE PHOTO: Canada’s Liberal Prime Minister Justin Trudeau visits a veterans’ retirement residence throughout his election marketing campaign tour in Victoria, British Columbia, Canada August 19, 2021. REUTERS/Kevin Gentle
By Steve Scherer
HAMILTON, Ontario (Reuters) – A re-elected Liberal authorities would ban foreigners from shopping for Canadian houses for the subsequent two years and make home purchases extra clear in a bid to handle speedy worth good points, Prime Minister Justin Trudeau stated on Tuesday.
Trudeau, in search of to retain energy in a Sept. 20 federal election, additionally promised to construct extra houses and assist renters turn out to be house owners with a rent-to-own scheme, a down fee financial savings program and larger tax credit.
“In the event you work onerous, if you happen to save, that dream of getting your personal place ought to be in attain,” Trudeau stated throughout a marketing campaign cease in Hamilton, Ontario, a fast-growing metropolis exterior Toronto.
Canadian residence costs have jumped 15.6% within the final 12 months and the Canadian Actual Property Affiliation’s residence worth index is up 69.7% since November 2015, when Trudeau first took workplace.
The Liberals pledged to ban new international possession of Canadian houses for 2 years and increase an present tax on foreign-owned vacant housing. They promised an anti-flipping tax that may kick in on residential properties bought inside 12 months of buy.
“We’ll crack down on predatory speculators that stack the deck in opposition to you. So no extra blind bidding,” stated Trudeau.
Blind bidding is a apply in Canada the place consumers submit a suggestion not figuring out what their opponents are providing. Opponents say it may be abused to inflate promoting costs.
Many Canadian housing markets have cooled from the height of the pandemic-driven shopping for frenzy, however hundreds of would-be consumers now want way more to afford down funds.
The Liberals say their new rent-to-own pledge will assist Canadians save for down funds by turning a portion of their hire into financial savings, whereas the down fee financial savings program will permit for tax-free financial savings.
Trudeau’s predominant rival, Conservative chief Erin O’Toole, pledged final week https://www.reuters.com/world/americas/canadas-conservatives-promise-job-boom-challenge-trudeau-2021-08-16 to construct 1,000,000 houses over three years and stated he would ban non-resident foreigners from shopping for Canadian properties for a minimum of two years.
(Writing and extra reporting by Julie Gordon in Ottawa; modifying by David Ljunggren and Jonathan Oatis)
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