Government Threatens to Make Home Buying More Difficult

Our "conservative" federal government is considering raising the down payment requirement from 5% to 10%.

For many buyers, coming up with $10,000 on a $200,000 purchase is difficult enough, imagine trying to raise $20,000 cash? This may not be a problem for clients in other parts of the country where the incomes are higher, but I can tell you that it is a fairly rare occasion for home buyers here in Nova Scotia to have more than 5% available for a down payment.

If this happens, it will create an opportunity for Finance Companies, that are not backed by the Canadian Mortgage & Housing Corporation (CMHC), to offer a 5% down program at higher interest rates. Therefore, at the end of the day, I can't say our government's decision actually helps Canadians. But since when does the government put their constituents first?