This is Joe Aiello and me after a tough loss in the semi finals, to end our indoor pickleball season.
We had a blast. I’ll definitely continue to try to get out to play some pickleball during the summer.
After the game we decided to celebrate the end of the season by grabbing some pizza and beer together and watching the Red Wings game.
This was the final game of the season and the Wings needed to win this game to make it into the playoffs.
They also needed the Washington Capitals to either lose or tie against the Philadelphia Flyers.
The Wings did their part and won a thriller of a game. They tied it with 7 seconds left in the third period and won in a shootout.
Washington and Philadelphia were tied 1-1, and with still three minutes left in regulation time, Philly decided to pull their goalie (Philly needed to win this game in regulation time to have a chance to make the playoffs).
Washington ended up scoring an empty net goal.
The Wings did not make the playoffs… again!
For those counting… that’s 8 years in a row. ☹
On Tuesday, the current Liberal Government officially unveiled its 8th consecutive Federal budget.
I have a lot of opinions on this budget (and this government…) but I am going to stick to the script, and only focus on the mortgage and real estate related items.
Otherwise, we could be here awhile…
The budget was very much focused on housing affordability, and more specifically, targeted initiatives to help first time home buyers.
Let me start by saying that I am very much in favour of helping first time home buyers.
I find it sad how quickly the rug got pulled out from underneath them (as it pertains to housing).
I think the Budget got it right, by identifying this group.
But I don’t think they got the policies right…
One such policy is to extend the maximum length mortgage amortization period from 25 years to 30 years.
This applies only to first time homebuyers who are taking out insured mortgages (mortgages where the down payment is less than 20%) and purchasing only a newly constructed home.
This is very specific.
And it really only impacts a small portion of the market.
In Ontario, first time homebuyers represent just one in five transactions.
Additionally, insured mortgage originations are a relatively very small share of the mortgage market.
The problem that I have with this policy is that I do not believe it actually addresses the real issue… Affordability!
They’re essentially changing the rules to allow first time home buyers to borrow more money.
If anything, this is a demand side policy. Meaning it could add to the demand for real estate, which could lead to even higher prices.
As it pertains to real estate, there’s no need to encourage more demand… There is already too much demand in the system.
What needs to be addressed is the supply side.
One way to make houses more affordable, is to match housing supply more evenly to demand.
To be fair, they did announce several supply-side policies directed towards developers, and more specifically rental units.
And this is necessary. More rentals are needed. Current stock is insufficient, and mostly old and tired.
But I don’t think that young people and newcomers to Canada get overly excited to live in a high-rise rental unit.
Canadians strive to have a house, with a yard, and some privacy.
And while this current budget very much tries to appeal to Canadians that are frustrated with the fact that they can’t own a house… in reality the policies announced make the possibility of ownership even more unrealistic.
So I’ve said it before, and I’ll say it again… single family homes are becoming a scarce commodity in Canada, and the window of opportunity to own one, is closing.
If you’re looking to purchase a family home, or even an investment property… take action sooner rather than later!
And as always, we are here to help! If you have any questions related to mortgages, finances, real estate… or anything else for that matter, don’t hesitate to reach out.
Heck, you can even call us to discuss the Red Wings playoff chances for next year, or your pickleball game.
Talk Soon,
Vince
P.S. I promised myself I wouldn’t get overly political in this newsletter, so feel free to reach out to ask me how I really feel about the change to the capital gains policy that was announced.
P.P.S. Maple Leaf fans… this better be your year… the Wings’ rebuild is almost complete… we’re coming for you next season!
