Economist slams BC first-timers loan

by Steve Randall on 16 Dec 2016
The announcement from the BC government that it will help first-time buyers with a new tax-free loan program has been welcomed by many but not everyone agrees that it is the right move.

The scheme will enable eligible buyers to receive funding from Victoria for the greater of up to 5 per cent of their new home’s purchase or $37,500, to match their own downpayment savings.

"The introduction of this program will address the affordability gaps that, as a REALTOR®, I hear about every day," says BC Real Estate Association President Deanna Horn. "We thank Premier Clark and Minister Coleman for introducing this valuable program to assist first time home buyers in entering the marketplace."

However, economist Tom Davidoff of the University of B.C.’s Sauder School of Business, slammed the idea, saying that supply is the issue that needs to be addressed.

“I hate it. To be very clear, I think it’s really bad economics,” Davidoff told the Vancouver Sun.

Post a Comment

Most Trending News

How much do real estate agents make in Toronto?

Commission isn't everything. You should also take other things into consideration such as the cost of marketing, licensing, renting an office, and splitting commissions with the brokerage.

Read More
Can I use the word 'realtor' in advertising?

As a member of CREA, you can use REALTOR® in your advertisements but there are a few basic rules that you should follow in order to use the trademark correctly.

Read More
Personal real estate corporation Ontario

A personal real estate corporation (PREC) belongs to an individual agent or a broker. There can be many benefits to starting your own PREC in Ontario.

Read More