Trudeau Targets Home-Buying Millennials With Equity Plan
- Housing measures may boost demand as sales, prices slump
- CMHC will finance up to 10% of down payment on C$480,000 loan
Canada’s Morneau talks about the budget, the economy, the bilateral relations with China, and trade deals.
(Source: Bloomberg)This article is for subscribers only.
Canada’s housing agency will spend up to C$1.25 billion ($943 million) over three years to take equity positions in homes bought by first-time buyers, part of a plan by Justin Trudeau’s government to make housing more affordable for the youngest voters.
According to federal budget documents released Tuesday in Ottawa, Canada Mortgage and Housing Corp. will provide up to 10 percent funding for new homes and 5 percent for existing homes to reduce mortgage costs for low- to middle-income buyers. The financing would apply to insured mortgages, which are required if the buyer puts less than a 20 percent down payment on the property.